HUD Exam - Financial Management
Questions & Answers6
All of the following would help a counselor develop a realistic household budget, except:
A. Payment information for a paid-off car
B. Amount spent on groceries
C. Rent payment information
D. Monthly cable bill - ANSWERS-Answer: A
Since the car is paid off, the expense does not need to be included in the new budget.
All of the following are reasons why it is important for a client to track income and expenses
before finalizing a budget, except:
A. It helps show clients that they spend less on some expenses than they think.
B. It helps identify spending habits
C. It helps show clients that their spending and expenses are out of control.
D. It helps define realistic and attainable goals and timelines. - ANSWERS-Answer: C.
Clients may find that their spending and expenses are out of control. However, the purpose of
tracking is to inform realistic budget preparation, not to condone or condemn a client's
judgement.
Which of the following is a "want" and not a "need"
A. Health care premium
B. Car insurance
C. Gym Membership
D. Rent - ANSWERS-Answer: C. Gym Membership.
, What information is used in determining a budget (give 4) - ANSWERS-Pay Stub, Bank
Statements, Utility Bills, and Social Security Award Letter.
Ray's commute on the bus takes over an hour, so he wants to buy a car as soon as possible, but
he has poor credit and cannot obtain a loan right now. He thinks he can find a reliable car for
about $2,000 and has about 20% of the total in the bank from his tax refund. if Ray's goal is to
buy a car within 8 months, what is the minimum amount he needs to save each month? -
ANSWERS-Ray has 20% of $2,000 saved, or $400, so he needs at lease $1,600 more to reach his
goal. If he saves for 8 months, he will need to save $200 each month.
Which section of a credit report will contain employer details? - ANSWERS-Personal Information
Which section of a credit report will contain information about a student loan - ANSWERS-
Account Information
Which section of a credit report will contain court information such as bankruptcy? - ANSWERS-
Public Records
Which section of a credit report will show recent attempts to open a credit card? - ANSWERS-
Inquiries
Which section of a credit report will contain information about how to correct inaccuracies? -
ANSWERS-Consumer Rights.
Account History - ANSWERS-Payment history of accounts, including late payments,
delinquencies, judgments, and liens
Amounts Owed - ANSWERS-Ratio of total credit extended to the amount of credit owed
Questions & Answers6
All of the following would help a counselor develop a realistic household budget, except:
A. Payment information for a paid-off car
B. Amount spent on groceries
C. Rent payment information
D. Monthly cable bill - ANSWERS-Answer: A
Since the car is paid off, the expense does not need to be included in the new budget.
All of the following are reasons why it is important for a client to track income and expenses
before finalizing a budget, except:
A. It helps show clients that they spend less on some expenses than they think.
B. It helps identify spending habits
C. It helps show clients that their spending and expenses are out of control.
D. It helps define realistic and attainable goals and timelines. - ANSWERS-Answer: C.
Clients may find that their spending and expenses are out of control. However, the purpose of
tracking is to inform realistic budget preparation, not to condone or condemn a client's
judgement.
Which of the following is a "want" and not a "need"
A. Health care premium
B. Car insurance
C. Gym Membership
D. Rent - ANSWERS-Answer: C. Gym Membership.
, What information is used in determining a budget (give 4) - ANSWERS-Pay Stub, Bank
Statements, Utility Bills, and Social Security Award Letter.
Ray's commute on the bus takes over an hour, so he wants to buy a car as soon as possible, but
he has poor credit and cannot obtain a loan right now. He thinks he can find a reliable car for
about $2,000 and has about 20% of the total in the bank from his tax refund. if Ray's goal is to
buy a car within 8 months, what is the minimum amount he needs to save each month? -
ANSWERS-Ray has 20% of $2,000 saved, or $400, so he needs at lease $1,600 more to reach his
goal. If he saves for 8 months, he will need to save $200 each month.
Which section of a credit report will contain employer details? - ANSWERS-Personal Information
Which section of a credit report will contain information about a student loan - ANSWERS-
Account Information
Which section of a credit report will contain court information such as bankruptcy? - ANSWERS-
Public Records
Which section of a credit report will show recent attempts to open a credit card? - ANSWERS-
Inquiries
Which section of a credit report will contain information about how to correct inaccuracies? -
ANSWERS-Consumer Rights.
Account History - ANSWERS-Payment history of accounts, including late payments,
delinquencies, judgments, and liens
Amounts Owed - ANSWERS-Ratio of total credit extended to the amount of credit owed
