AFIP Basic Certification Actual Exam
AFIP BASIC CERTIFICATION ACTUAL EXAM NEWEST AFIP BASIC
CERTIFICATION EXAM PREPARATION/AFIP BASIC
CERTIFICATION PRACTICE EXAM WITH COMPLETE QUESTIONS
AND CORRECT ANSWERS| BRAND NEW VERSION!
What is an acceleration clause?
B. If the customer defaults under the contract, the lender can make the full
outstanding balance due and payable
An installment sale contract may contain a provision that allows the lender to
_______ property insurance if the customer fails to obtain insurance or lets it
lapse.
A. force place
What do the letters in UDAP stand for?
E. Unfair, Deceptive, Acts, Practices
What are the three required elements of a contract?
D. An offer, acceptance, and consideration.
What are the criteria for "acceptance" of an offer?
D. All of the above
The __________ issues UDAP violations to dealers, the __________ issues UDAAP
violations to dealers.
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, AFIP Basic Certification Actual Exam
A. CFPB, FTC
(True/False) The dealer is the creditor in a typical credit transaction.
True
As noted in the Truth in Lending Act and Reg. Z, if the customer owes more on the
trade-in than the used car manager allowed, should the F&I manager do?
D. None of the above
Which of the following transactions are NOT regulation by TILA/Reg Z?
D. Both A and C
(True/False)
With the exception of some Precomputed Interest contracts used by secondary
finance sources, all other installment sales contracts are simple interest or
interest-bearing contracts. The following is a layman's explanation of a simple
interest installment sale transaction. In a precomputed contract the finance
charge is computed on the assumption the contract will run full term. If the
customer terminates the agreement during the repayment term, he will receive a
refund of the unearned premium.
In a simple interest- or interest-bearing installment sale agreement, the finance
charge is computed daily and paid monthly throughout the term of the
agreement. If the customer pays-off the vehicle before the scheduled end of the
contract there is unearned finance charge money to refund, but it has been each
month the contract has been in force. There is no refund of the unearned finance
charge.
2|Page
, AFIP Basic Certification Actual Exam
True
Which of the following regulations implements the Truth in Lending Act?
D. Regulation Z
(True/False)
The Truth in Lending Act (TILA) is implemented by Regulation Z
True
THE APR is a mandated disclosure. It must be used in oral discussion with a
customer, in funding-related advertisements, and on the retail installment sale
agreement. A customer asks, what does the APR mean? Your response should be:
B. That's the "cost of credit" as a yearly rate
(True/False)
State law can require additional disclosures beyond those mandated by the TILA,
Reg. Z
True
(True/False)
All of the following items are Truth in Lending Act or Reg. Z disclosure box items:
A. The amount financed
B. The total of the payments
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, AFIP Basic Certification Actual Exam
C. The dollar or percentage charged due to a late payment
D. The cost of an oil change
E. The payment schedule - the number, amounts, and timing of payments
False. D. The cost of an oil change is not included.
(True/False)
All of the following items are triggering terms on an advertisement for an
installment sale:
A. The number or percentage of any down payment
B. The number of payments or the contract term
C. The amount of any payment
D. The amount of any finance charge
True
At the point in the financing process where the retail installment sale agreement
is to be disclosed to the customer, at that point in time the parties to the contract
are the customer and the _________.
B. Selling dealer
As recorded on an installment sale agreement the total price or deferred contract
price would be the total of the _______.
D. All of the above
(True/False)
4|Page
AFIP BASIC CERTIFICATION ACTUAL EXAM NEWEST AFIP BASIC
CERTIFICATION EXAM PREPARATION/AFIP BASIC
CERTIFICATION PRACTICE EXAM WITH COMPLETE QUESTIONS
AND CORRECT ANSWERS| BRAND NEW VERSION!
What is an acceleration clause?
B. If the customer defaults under the contract, the lender can make the full
outstanding balance due and payable
An installment sale contract may contain a provision that allows the lender to
_______ property insurance if the customer fails to obtain insurance or lets it
lapse.
A. force place
What do the letters in UDAP stand for?
E. Unfair, Deceptive, Acts, Practices
What are the three required elements of a contract?
D. An offer, acceptance, and consideration.
What are the criteria for "acceptance" of an offer?
D. All of the above
The __________ issues UDAP violations to dealers, the __________ issues UDAAP
violations to dealers.
1|Page
, AFIP Basic Certification Actual Exam
A. CFPB, FTC
(True/False) The dealer is the creditor in a typical credit transaction.
True
As noted in the Truth in Lending Act and Reg. Z, if the customer owes more on the
trade-in than the used car manager allowed, should the F&I manager do?
D. None of the above
Which of the following transactions are NOT regulation by TILA/Reg Z?
D. Both A and C
(True/False)
With the exception of some Precomputed Interest contracts used by secondary
finance sources, all other installment sales contracts are simple interest or
interest-bearing contracts. The following is a layman's explanation of a simple
interest installment sale transaction. In a precomputed contract the finance
charge is computed on the assumption the contract will run full term. If the
customer terminates the agreement during the repayment term, he will receive a
refund of the unearned premium.
In a simple interest- or interest-bearing installment sale agreement, the finance
charge is computed daily and paid monthly throughout the term of the
agreement. If the customer pays-off the vehicle before the scheduled end of the
contract there is unearned finance charge money to refund, but it has been each
month the contract has been in force. There is no refund of the unearned finance
charge.
2|Page
, AFIP Basic Certification Actual Exam
True
Which of the following regulations implements the Truth in Lending Act?
D. Regulation Z
(True/False)
The Truth in Lending Act (TILA) is implemented by Regulation Z
True
THE APR is a mandated disclosure. It must be used in oral discussion with a
customer, in funding-related advertisements, and on the retail installment sale
agreement. A customer asks, what does the APR mean? Your response should be:
B. That's the "cost of credit" as a yearly rate
(True/False)
State law can require additional disclosures beyond those mandated by the TILA,
Reg. Z
True
(True/False)
All of the following items are Truth in Lending Act or Reg. Z disclosure box items:
A. The amount financed
B. The total of the payments
3|Page
, AFIP Basic Certification Actual Exam
C. The dollar or percentage charged due to a late payment
D. The cost of an oil change
E. The payment schedule - the number, amounts, and timing of payments
False. D. The cost of an oil change is not included.
(True/False)
All of the following items are triggering terms on an advertisement for an
installment sale:
A. The number or percentage of any down payment
B. The number of payments or the contract term
C. The amount of any payment
D. The amount of any finance charge
True
At the point in the financing process where the retail installment sale agreement
is to be disclosed to the customer, at that point in time the parties to the contract
are the customer and the _________.
B. Selling dealer
As recorded on an installment sale agreement the total price or deferred contract
price would be the total of the _______.
D. All of the above
(True/False)
4|Page
