AFC CERTIFICATION EXAM |ACTUAL QUESTIONS
AND VERIFIED ANSWERS|BRAND NEW 2026-2027
UPDATE|GRADED A+
Question 1
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
Question 2
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.
Question 3
Which of the following factors affects a credit score?
1
, 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.
Question 4
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.
Question 5
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?
2
AND VERIFIED ANSWERS|BRAND NEW 2026-2027
UPDATE|GRADED A+
Question 1
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
Question 2
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.
Question 3
Which of the following factors affects a credit score?
1
, 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.
Question 4
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.
Question 5
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?
2
