Ficep Exam-with 100% verified solutions-2024-2025.docx, Exams of Advanced Education

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Ficep Exam-with 100% verified solutions-2024-

Which cycle describes members who are just surviving and living paycheck to paycheck? Earn/Spend/Earn/Spend Financial counselors who don't use what they know about hemispheric thinking may fall into the trap of: Presenting information to a member in a manner that might not be the best way to communicate Using a hard approach, rather than a soft approach, with members: Communicates in an orderly, specific, and straight- forward way The Johari Window describes four zones. When working with a member, the Hidden Zone represents: Information that is known to the member and not the counselor Which type of counseling should a consumer use when a member is preparing for a large purchase? Preventive What is NOT a vital counselor skill? Asking close-ended questions An example of pacing is when a counselor: Matches the member's energy level What is NOT a step in the change process? Not revising the plan What decision making tool is best to use when considering all forces in favor or against a plan so decision can be made? Force-field analysis What is the first step of the counseling process? Collect member data

It is best to divide a budget into which cycle? Monthly What provides a credit history including debt repayment practices for an individual? Credit report When discussing a member's budget analysis, build in assumptions and adjustments to make sure the process allows for a... 12-month cycle What is not a step that will reduce debt? Borrowing money from payday lenders Increasing a monthly payment beyond the minimum required by the credit issuer is known as: Paying more on the principal One advantage of leasing a car is: Locked into a contract When determining if a vehicle is affordable, one should consider the: Purchase price, maintenance costs, insurance costs What type of savings helps one cope when the unthinkable occurs? Emergency A good action plan includes: A list of steps and timeline for the member to complete What is NOT an example of ways members may start saving? Increasing living expenses with each new raise One way to overcome a member's objection to financial counseling is to: Express confidence in member's ability to address the problem

You cannot help couples and families who have difficulties talking through money issues by: Meeting with members separately for financial counseling What will NOT help families change financial habits? Having children be absent from discussions about spending changes T/F: Late payments on jointly held debts will not be reflected on both credit reports False Seasonal employees must: Plan for times when income is low When you own your own business, accounts payable is the: Amount of money you owe others T/F: Becoming an authorized user means that the user is required to acquire debt False Your credit report will not include: Income and asset information Identification and employment information does NOT include: Race/ethnicity information T/F: Payment history has the least influence on one's credit score False - it is the largest influence on an individual's credit score T/F: Inquiries impact credit scores True Individuals with high credit scores: Have a low percentage of available revolving credit T/F: There is a federal law that states that wages cannot be garnished for child support payments

False When dealing with creditors/collectors, it is important for members to: Be proactive T/F: Once a collection is paid, the negative history is not immediately removed from one's credit report True The amount a cardholder is required to pay each month is the: Minimum payment An advantage of using a credit card is: Peace of mind knowing funds are available T/F: You should accept unsolicited increases to your credit limit to help maximize borrowing power False T/F: If a medical bill is ultimately paid by an insurance company, the CRAs must remove the item from a credit report True T/F: Estate obligations must be paid prior to any inheritance being paid True When counseling members, when is the best time to ask if they have medical debt? During an initial needs assessment When it comes to address medical debt, counselors need to: Coach members on how to handle medical debt A rule of thumb for education funding is known as the: Rule of thirds Student loan refinancing means:

Taking out a new loan to pay off existing loans One needs to consider the lending amount (min and max), income requirements, and cosigner release when: Comparing refinancing companies T/F: Wages cannot be garnished if a federal student loan is in default False T/F: Social security wages may be garnished if a federal student loan is in default True T/F: Seniors may have student loan debt because they discharged it in their bankruptcy False: Most student loans cannot be discharged in bankruptcy T/F: Cure default is a way in which repossessions can occur False T/F: Full coverage automobile insurance is a secondary product that can be added to a vehicle loan to help in case an emergency occurs False - Examples of these would be GAP insurance, credit life & disability insurance, or extended warranty T/F: Owning generally builds property equity True T/F: Members who are refinancing debt should be encouraged to use a HELOC False When a member is experiencing severe financial problems, it is important to: Determine if the member is judgement proof T/F: Lenders are more willing to work with members in the late stages of foreclosure rather than early in the process False

T/F: Alimony is not a dischargeable debt in Ch. 7 and 13 bankruptcies, no exceptions. True What can credit unions do to help reduce loss associated with bankruptcy? Offer incentives to reaffirm on a debt (Ex. Allow member to retain an active credit card) Members will not benefit from a bankruptcy if they do not: Address overspending and compulsive shopping habits After a bankruptcy, members should: Monitor credit scores every few months If members wish to re-establish debt after a bankruptcy, they should not: Avoid all debt in the future After members experience identity theft, they should not: Assume fraudsters will not use their identity maliciously With fraud alerts or a freeze on your credit report, you do not have to: Be sure all of your debts are in good standing T/F: CRAs may block accounts at their discretion if one is an identity theft victim False T/F: Opening an account with $100,000 is a sign of financial exploitation False Reviewing a credit report after a member has been a victim of elder abuse will help members except: Monitoring deposit accounts for activity T/F: It's best for members to invest in stocks versus bonds and cash False To make the most of a 401(k) or a 403(b) account, members should avoid: Taking out a loan against them

T/F: Loans are allowed on a Traditional IRA account False T/F: Springing (conditions) POA is best for selling property while one is out of state for awhile. False T/F: The POA's key responsibility is to make decision based on the principal's wishes not their own comfort True T/F: It is necessary to have a plan in place in the event of death or disability if you are the sole owner of a business True What is the first immediate step someone needs to take after a death? Determine if the deceased had a prepaid funeral plan After a death, financial counselors may: Help members make a list of all debts and financial obligations T/F: Financial counselors can handle any situation a member faces because nothing is beyond their scope of practice False Members dealing with addiction, mental illness, or physical abuse have: Immediate needs in which a counselor needs to refer to an outside resource This type of tax charges everyone the same percentage of an item's cost Regressive tax T/F: Single, filing jointly is a tax filing status False

T/F: Members will likely not have to update their income tax withholding if they recently separated from a spouse True By pooling risk, insurers: Limit their exposure when losses occur T/F: Insurance coverage is the best way to evaluate risk False What is not an insurance decision rule? Add insurance coverage for all assets T/F: Life insurance is necessary for all family members False Before referring a member to a financial planner for investing advice, be sure the members has a: Sufficient emergency fund What is the Rule of 72? Calculates how many years it will take to double an investment T/F: Financial counselors are not financial planners True T/F: Regular, monthly deposits is a warning sign of addiction False What is not a way to counsel partners of addicts? Only focusing on the member's finances rather than the addict's T/F: Credit unions do not need to comply with SCRA and MLA False T/F: Advocates for veteran assistance can be found in a variety of organizations

True T/F: Meeting spaces should have uninterrupted attention, privacy, and hospitality True What is not a safety concern when meeting with members? Providing a meeting space where everyone is on an even playing field What is not an option for working with credit union organizations? Insurance companies T/F: A benefit of employee financial counseling is that employees use more sick days False When creating a financial counseling and financial wellness program for CU employees, it is important the program be: Multiple subjects T/F: An intake form should contain the member's child's name False The key objective of any CU counseling and education program should be to: Improve members' financial well-being without being a detriment to the credit union