FICEP Test V1
• savings helps members plan for known
future expenses.: Set aside
• savings have to be more than just a deposit to a 401(k)plan.:
Retirement
• Spending allowances should be broken down into
amounts: -
weekly
• T or F
It is important that counselors ask a member to sign a contract to reinforceand stick with the
plan they have chosen or it will not work.: False
• One of the ways members can get started saving is to set aside the net amount of a in a
savings account and continue to live on what theirprior pay.: raise
• savings is a nest egg to help members through
a period of lost or reduced income. This is also the middle tier of thesavings pyramid.: Safety
net
• When working with members one of the most important things is to be un-derstanding and
acknowledge a member's .:
Apprehension
• Writing down goals is the first step to having a productive money
conversation with families.: individual
• Money management roles are often learned during
.: Child-hood
• T or F
It is best to leave children out of the financial counseling sessions and allowthe adults to
handle all financial conversations with the counselor.: False
• Disagreement over money is the most frequently cited reason for
.: divorce
• T or F
Marital status is not a factor in the credit scoring systems.: True
• When budgeting after a divorce, it is recommended that a member be con- servative and
choose that is less expensive that one can afford until
they have a better understanding on their new financial status.: Housing
• A challenge of self-employment includes maintaining a reliable source of income and
preparing for fluctuations in income: seasonal
, • Small businesses can acquire from lines of credit, credit cards,
personal loans and savings: Capital
• Paying bills is the most important thing members can
do to improve credit rating: on time
• The three main credit reporting agencies are ,
, and . Each calculate credit scores individ-
ually.: Equifax, Experian, Transunion
• Credit reports contain identifying information, history,
publicrecords including collections and credit inquiries in the last 2 years.: payment
• T or F
Income information is included in a credit report: False
• Members can get a free copy of their credit report a year:
once
• Credit reporting agencies investigate all claim disputes within days.: 30
• FICO scores range from a low of 300 to a high of .: 850
• is the amount of available credit a member has an ditsaccounts for
30% of a credit score.: capacity
• The largest influence on a credit score is a member's payment and it accounts for 35%
of a credit score.: history
• payments can decrease a credit score up to 70 points by howfrequent,
recent, and severe the delinquency.: Missed
• Creditors can turn to the courts to place to collect
outstandingdebts.: judgments
• is the withholding of a member's pay that is submitted to a
creditor to pay a debt. Child support is the most common reason for thisaction.: Garnishment
• When communicating with a creditor, members should be .: -
proactive
• T or F
A "twelve month interest free" offer from a retailer is very beneficial for members with
limited income who need extra time to pay their debt.: False
• Credit card fees, risk of identity theft, danger of overspending, and interestcharges are of
credit cards.: disadvantages
• rates may not be the best deal because of balance transfer fees, length
• savings helps members plan for known
future expenses.: Set aside
• savings have to be more than just a deposit to a 401(k)plan.:
Retirement
• Spending allowances should be broken down into
amounts: -
weekly
• T or F
It is important that counselors ask a member to sign a contract to reinforceand stick with the
plan they have chosen or it will not work.: False
• One of the ways members can get started saving is to set aside the net amount of a in a
savings account and continue to live on what theirprior pay.: raise
• savings is a nest egg to help members through
a period of lost or reduced income. This is also the middle tier of thesavings pyramid.: Safety
net
• When working with members one of the most important things is to be un-derstanding and
acknowledge a member's .:
Apprehension
• Writing down goals is the first step to having a productive money
conversation with families.: individual
• Money management roles are often learned during
.: Child-hood
• T or F
It is best to leave children out of the financial counseling sessions and allowthe adults to
handle all financial conversations with the counselor.: False
• Disagreement over money is the most frequently cited reason for
.: divorce
• T or F
Marital status is not a factor in the credit scoring systems.: True
• When budgeting after a divorce, it is recommended that a member be con- servative and
choose that is less expensive that one can afford until
they have a better understanding on their new financial status.: Housing
• A challenge of self-employment includes maintaining a reliable source of income and
preparing for fluctuations in income: seasonal
, • Small businesses can acquire from lines of credit, credit cards,
personal loans and savings: Capital
• Paying bills is the most important thing members can
do to improve credit rating: on time
• The three main credit reporting agencies are ,
, and . Each calculate credit scores individ-
ually.: Equifax, Experian, Transunion
• Credit reports contain identifying information, history,
publicrecords including collections and credit inquiries in the last 2 years.: payment
• T or F
Income information is included in a credit report: False
• Members can get a free copy of their credit report a year:
once
• Credit reporting agencies investigate all claim disputes within days.: 30
• FICO scores range from a low of 300 to a high of .: 850
• is the amount of available credit a member has an ditsaccounts for
30% of a credit score.: capacity
• The largest influence on a credit score is a member's payment and it accounts for 35%
of a credit score.: history
• payments can decrease a credit score up to 70 points by howfrequent,
recent, and severe the delinquency.: Missed
• Creditors can turn to the courts to place to collect
outstandingdebts.: judgments
• is the withholding of a member's pay that is submitted to a
creditor to pay a debt. Child support is the most common reason for thisaction.: Garnishment
• When communicating with a creditor, members should be .: -
proactive
• T or F
A "twelve month interest free" offer from a retailer is very beneficial for members with
limited income who need extra time to pay their debt.: False
• Credit card fees, risk of identity theft, danger of overspending, and interestcharges are of
credit cards.: disadvantages
• rates may not be the best deal because of balance transfer fees, length
