AFC Exam with all Correct & 100% Verified Answers |
Actual Complete Exam |Already Graded A+
Aaron Jefferies has located a condominium he would like to buy, and he would like the current
owners to leave all window coverings in the condo. This condition should be included in the
✔Correct Answer-purchase offer and purchase contract.
Kim was injured in a freak accident in her dorm room and had to spend several days in the
hospital. Her covered medical costs totaled $14,000. How much will Kim's health insurance
policy pay for this claim given the following policy information?
$250 deductible per year
80/20 coinsurance
$1,500 per year out-of-pocket coinsurance cap ✔Correct Answer-$12,250
Jeffrey invests $300 in his Roth IRA every month, regardless of the market conditions. What
strategy is Jeffrey utilizing? ✔Correct Answer-Dollar cost averaging
What do credit bureaus do? ✔Correct Answer-They collect and provide credit information.
Retirement investments can easily be made with ✔Correct Answer-pretax income.
One can lower insurance premiums by doing all of the following EXCEPT ✔Correct Answer-
avoiding coinsurance.
Jax, who is 27 years old, has always wanted a boat. He found one for $20,000 and took money
$30,000 out of his 401(k) to pay for it. Assuming Jax is in the 25% tax bracket, how much will Jax
pay in taxes on his withdrawal? ✔Correct Answer-Answer: $10,500
Explanation: $30,000 x .25 = $7,500
10% early withdrawal penalty: $3,000
Which of the following is not a way of reducing taxable income? ✔Correct Answer-Reducing
deductions
Your client brings in this credit card statement. He knows paying the minimum balance will take
many years to pay off. How much does he need to pay each month to pay the card off in 3
years? ✔Correct Answer-$37 (look at the minimum payment warning in the bottom right)
In which chapter of bankruptcy does a trustee examine assets to determine what can be sold for
the benefit of creditors? ✔Correct Answer-Chapter 7
, Diana and Kim are roommates in college and Diana owes Kim for last month's rent. When Diana
receives a check from her mother for the rent, what type of endorsement should Diana use to
sign this check over to Kim? ✔Correct Answer-Special endorsement
During a recession, people and business are likely to engage in ____________; meaning that
their use of credit will decrease. ✔Correct Answer-deleveraging
Your client wants to avoid Required Minimum Distributions during retirement. Which of these
accounts will allow him to meet that goal? ✔Correct Answer-Roth IRA
Jim spent $300 on some new clothes rather than using this money to going to his college team's
away game last weekend. The benefits of the trip are the ____ cost of buying the clothing.
✔Correct Answer-opportunity
Jeff's minimum payment is $150 for his credit card. He has the following balances and interest
rates on his card:
Purchases $325 8%
Cash Advance $2,000 22%
Balance Transfer $800 $1.9%
Jeff has some extra money this month so he sends in $200. Which balance does the $200 have
to apply to? ✔Correct Answer-Cash Advance
A cash advance can be obtained by using ✔Correct Answer-bank credit card accounts.
Put these steps in the correct order:
Goal Setting
Generating Solutions
Establish an action plan
Implement plan
Monitor plan ✔Correct Answer-Correct Order:
1) Goal Setting
2) Generating Solutions
3) Establish an action plan
4) Implement plan
5) Monitor plan
You may still owe money after repossession if there is a ✔Correct Answer-deficiency balance.
Blaine and Lindsay McDonald have total assets valued at $346,000 and total debt of $168,000.
What is Blaine and Lindsay's asset-to-debt ratio? ✔Correct Answer-Answer: 2.06
Explanation: 346000/168000 = 2.06
Actual Complete Exam |Already Graded A+
Aaron Jefferies has located a condominium he would like to buy, and he would like the current
owners to leave all window coverings in the condo. This condition should be included in the
✔Correct Answer-purchase offer and purchase contract.
Kim was injured in a freak accident in her dorm room and had to spend several days in the
hospital. Her covered medical costs totaled $14,000. How much will Kim's health insurance
policy pay for this claim given the following policy information?
$250 deductible per year
80/20 coinsurance
$1,500 per year out-of-pocket coinsurance cap ✔Correct Answer-$12,250
Jeffrey invests $300 in his Roth IRA every month, regardless of the market conditions. What
strategy is Jeffrey utilizing? ✔Correct Answer-Dollar cost averaging
What do credit bureaus do? ✔Correct Answer-They collect and provide credit information.
Retirement investments can easily be made with ✔Correct Answer-pretax income.
One can lower insurance premiums by doing all of the following EXCEPT ✔Correct Answer-
avoiding coinsurance.
Jax, who is 27 years old, has always wanted a boat. He found one for $20,000 and took money
$30,000 out of his 401(k) to pay for it. Assuming Jax is in the 25% tax bracket, how much will Jax
pay in taxes on his withdrawal? ✔Correct Answer-Answer: $10,500
Explanation: $30,000 x .25 = $7,500
10% early withdrawal penalty: $3,000
Which of the following is not a way of reducing taxable income? ✔Correct Answer-Reducing
deductions
Your client brings in this credit card statement. He knows paying the minimum balance will take
many years to pay off. How much does he need to pay each month to pay the card off in 3
years? ✔Correct Answer-$37 (look at the minimum payment warning in the bottom right)
In which chapter of bankruptcy does a trustee examine assets to determine what can be sold for
the benefit of creditors? ✔Correct Answer-Chapter 7
, Diana and Kim are roommates in college and Diana owes Kim for last month's rent. When Diana
receives a check from her mother for the rent, what type of endorsement should Diana use to
sign this check over to Kim? ✔Correct Answer-Special endorsement
During a recession, people and business are likely to engage in ____________; meaning that
their use of credit will decrease. ✔Correct Answer-deleveraging
Your client wants to avoid Required Minimum Distributions during retirement. Which of these
accounts will allow him to meet that goal? ✔Correct Answer-Roth IRA
Jim spent $300 on some new clothes rather than using this money to going to his college team's
away game last weekend. The benefits of the trip are the ____ cost of buying the clothing.
✔Correct Answer-opportunity
Jeff's minimum payment is $150 for his credit card. He has the following balances and interest
rates on his card:
Purchases $325 8%
Cash Advance $2,000 22%
Balance Transfer $800 $1.9%
Jeff has some extra money this month so he sends in $200. Which balance does the $200 have
to apply to? ✔Correct Answer-Cash Advance
A cash advance can be obtained by using ✔Correct Answer-bank credit card accounts.
Put these steps in the correct order:
Goal Setting
Generating Solutions
Establish an action plan
Implement plan
Monitor plan ✔Correct Answer-Correct Order:
1) Goal Setting
2) Generating Solutions
3) Establish an action plan
4) Implement plan
5) Monitor plan
You may still owe money after repossession if there is a ✔Correct Answer-deficiency balance.
Blaine and Lindsay McDonald have total assets valued at $346,000 and total debt of $168,000.
What is Blaine and Lindsay's asset-to-debt ratio? ✔Correct Answer-Answer: 2.06
Explanation: 346000/168000 = 2.06
