AFC Certification Pre-Assessment with all Correct & 100%
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Graded A+
Which one of the following desk or table shapes is more likely to create an atmosphere of
inequality?
a. Round
b. Square
C. Oval
d. Rectangle ✔Correct Answer-Rectangle
Credit can be very positive when used properly, and the highest interest rates are charged on
_____________________.
a. HELOC lines of credit
b. HELOC lump sum loans
c. Balance transfer loans
d. Cash advance loans. ✔Correct Answer-Cash advance loans.
Which of the following factors affects a credit score?
a. The number of bank accounts recently opened.
b. The number of new credit cards recently opened.
c. The number of people authorized to use a credit card.
d. The number of debit cards used each month. ✔Correct Answer-The number of new credit
cards recently opened.
A married couple would like to examine the potential of using their home equity to borrow
funds in order to remodel their kitchen at a cost of $17,000. The couple purchased the home 3
years ago for its market value of $135,000. The interest rate on their 30-year fixed-rate
mortgage is 4.25% and they were able to put down a 5% down payment towards the purchase.
The market value of the home has grown at 2.5% per year and the current balance owed on the
mortgage is $121,478. If the local Credit Union is offering to lend the couple up to 80% of their
home equity in the form of a home equity loan to remodel their kitchen, will they be able to
borrow the money necessary to complete the project this third year? How much of the
homeowner's equity will they need?
a. Yes, they only need to borrow 71% of their homeowner's equity.
b. Yes, they only need to borrow 63% of their homeowner's
c. No, they would need to borrow 82% of t ✔Correct Answer-Yes, they only need to borrow
71% of their homeowner's equity.
A client has incurred a large amount of credit card debt during an extended stretch of
unemployment. Although now fully employed with a livable salary, she is struggling with the
, organizational skills necessary to repay all of the accounts. She is concerned with her ability to
borrow funds to purchase a home within 5 years and wants to pay the least amount of money
possible. Which is the client's best option for dealing with this debt situation?
a. Chapter 7 Bankruptcy
b. A Consumer Credit Counseling Agency Debt Management Program (DMP)
c. A self-administered debt repayment plan
d. Chapter 13 Bankruptcy ✔Correct Answer-A Consumer Credit Counseling Agency Debt
Management Program (DMP)
The government agency with enforcement powers on behalf of individual consumers is the
a. FRB
b. FTC
c. CFPB
d. CPSC ✔Correct Answer-CFPB - Consumer Financial Protection Bureau
A local university alumni organization member has been using time at the monthly meetings to
market their money management and investment services. They discuss very complex
investment products and are promising annual investment returns which are double the current
averages while saying they are "virtually risk-free." The president of the alumni organization
sent out a letter to all of the members stating how the investment products were legitimate and
that the president personally invested a great sum of money with the specific money manager.
Clients should be most concerned about what type of investment fraud or scheme in this
situation?
a. Ponzi scheme
b. Affinity fraud
c. Pyramid scheme
d. Internet investment fraud ✔Correct Answer-Affinity fraud - Affinity frauds target members
of identifiable groups, such as the elderly, or religious or ethnic communities. The fraudsters
involved in affinity scams often are - or pretend to be - members of the group. They may enlist
respected leaders from the group to spread the word about the scheme, convincing them it is
legitimate and worthwhile. Many times, those leaders become unwitting victims of the fraud
they helped to promote.
These scams exploit the trust and friendship that exists in groups of people. Because of the
tight-knit structure of many groups, outsiders may not know about the affinity scam. Victims
may try to work things out within the group rather than notify authorities or pursue legal
remedies.
Affinity scams often involve "Ponzi" or pyramid schemes where new investor money is used to
pay earlier investors, making it appear as if the investment is successful and legitimate.
https://www.investor.gov/protect-your-investments/fraud/types-fraud/affinity-fraud
A warranty that is required by state law is
a. an implied warranty.
b. an express warranty.
Verified Answers |Actual Complete Exam |Already
Graded A+
Which one of the following desk or table shapes is more likely to create an atmosphere of
inequality?
a. Round
b. Square
C. Oval
d. Rectangle ✔Correct Answer-Rectangle
Credit can be very positive when used properly, and the highest interest rates are charged on
_____________________.
a. HELOC lines of credit
b. HELOC lump sum loans
c. Balance transfer loans
d. Cash advance loans. ✔Correct Answer-Cash advance loans.
Which of the following factors affects a credit score?
a. The number of bank accounts recently opened.
b. The number of new credit cards recently opened.
c. The number of people authorized to use a credit card.
d. The number of debit cards used each month. ✔Correct Answer-The number of new credit
cards recently opened.
A married couple would like to examine the potential of using their home equity to borrow
funds in order to remodel their kitchen at a cost of $17,000. The couple purchased the home 3
years ago for its market value of $135,000. The interest rate on their 30-year fixed-rate
mortgage is 4.25% and they were able to put down a 5% down payment towards the purchase.
The market value of the home has grown at 2.5% per year and the current balance owed on the
mortgage is $121,478. If the local Credit Union is offering to lend the couple up to 80% of their
home equity in the form of a home equity loan to remodel their kitchen, will they be able to
borrow the money necessary to complete the project this third year? How much of the
homeowner's equity will they need?
a. Yes, they only need to borrow 71% of their homeowner's equity.
b. Yes, they only need to borrow 63% of their homeowner's
c. No, they would need to borrow 82% of t ✔Correct Answer-Yes, they only need to borrow
71% of their homeowner's equity.
A client has incurred a large amount of credit card debt during an extended stretch of
unemployment. Although now fully employed with a livable salary, she is struggling with the
, organizational skills necessary to repay all of the accounts. She is concerned with her ability to
borrow funds to purchase a home within 5 years and wants to pay the least amount of money
possible. Which is the client's best option for dealing with this debt situation?
a. Chapter 7 Bankruptcy
b. A Consumer Credit Counseling Agency Debt Management Program (DMP)
c. A self-administered debt repayment plan
d. Chapter 13 Bankruptcy ✔Correct Answer-A Consumer Credit Counseling Agency Debt
Management Program (DMP)
The government agency with enforcement powers on behalf of individual consumers is the
a. FRB
b. FTC
c. CFPB
d. CPSC ✔Correct Answer-CFPB - Consumer Financial Protection Bureau
A local university alumni organization member has been using time at the monthly meetings to
market their money management and investment services. They discuss very complex
investment products and are promising annual investment returns which are double the current
averages while saying they are "virtually risk-free." The president of the alumni organization
sent out a letter to all of the members stating how the investment products were legitimate and
that the president personally invested a great sum of money with the specific money manager.
Clients should be most concerned about what type of investment fraud or scheme in this
situation?
a. Ponzi scheme
b. Affinity fraud
c. Pyramid scheme
d. Internet investment fraud ✔Correct Answer-Affinity fraud - Affinity frauds target members
of identifiable groups, such as the elderly, or religious or ethnic communities. The fraudsters
involved in affinity scams often are - or pretend to be - members of the group. They may enlist
respected leaders from the group to spread the word about the scheme, convincing them it is
legitimate and worthwhile. Many times, those leaders become unwitting victims of the fraud
they helped to promote.
These scams exploit the trust and friendship that exists in groups of people. Because of the
tight-knit structure of many groups, outsiders may not know about the affinity scam. Victims
may try to work things out within the group rather than notify authorities or pursue legal
remedies.
Affinity scams often involve "Ponzi" or pyramid schemes where new investor money is used to
pay earlier investors, making it appear as if the investment is successful and legitimate.
https://www.investor.gov/protect-your-investments/fraud/types-fraud/affinity-fraud
A warranty that is required by state law is
a. an implied warranty.
b. an express warranty.
