FICEP Practice Questions
• What is an item that members do not need to bring to the initial meeting? Three recent pay
stubs
Insurance policies
Passport
Outstanding bills: Passport
• Which expenditure represents a form of secured debt?Signature loan
Payday loan
Credit card
Car loan: Car loan
• Which factor is included among the five C's of credit?Currency
Capacity Collaboration Contingency: Capacity
• Which financial literacy topic is appropriate to learn at the preschool age?Minimizing risk
Investing Borrowing
Wants vs. needs.: Wants vs. needs.
• Which life stage may be an appropriate time for parents to create spendingplans with
children?
Preschool Elementary school
Middle school
High School: Middle school
• What is one type of savings one should have in a comprehensive spendingplan?
Chairty Set-asideMonthly
Paycheck to paycheck: Set-aside
• Which of these is not a debt management option?Lifestyle adjustment
Debt settlementBankruptcy
Payday lenders: Payday lenders
• What is the snowball approach to allocating payments among debts?Opting out of deb
card-based overdraft
Starts with smallest debts and gradually takes on larger amounts.Paying high-interest debts
first
,Application of low fees and interest to the member's original loan amount: -
Starts with smallest debts and gradually takes on larger amounts.
• When should the financial counselor consider suggesting debt settle-ment?
There are escrowed funds.
The member needs pre-approved or guaranteed creditor settlements. The members accounts
are already severely delinquent or in collections.
There is a need to block creditors from having the option to take legal actionagainst the
member.: The members accounts are already severely delinquent orin collections.
• Which of the following is something a good action plan achieves?Allows the member to
continue spending the way they have been.
Makes it possible for members to address and solve specific financial prob-lems.
Provides a third-party release of information that outlines how data will beshared.
Makes it possible to purchase more furniture.: Makes it possible for members toaddress and
solve specific financial problems.
• Which of the following should not be asked during a follow-up meeting?Is the plan
working?
Are adjustments needed?
Which parts of the process were successful, and which failed?
Can you control your spending now?: Can you control your spending now?
• Which of the following is one of the items to track and measure duringfinancial
counseling sessions?
Number of membersIncome generation Finances
Program effectiveness: Number of members
• A good intake form will record what?All of the member's family
The member's credit score
The member's high school transcript
The Member's passwords: The member's credit score
• Which information is included on a credit report?Current Address
Medical historyDebt ratio
Pets: Current Address
• Which element has the largest single influence on a credit score?New credit
Credit history lengthTypes of credit used.
, Payment history: Payment history
• Which action produces a "soft" hit on a credit score?A member applies for a new line of
credit.
Student loans
A member requests a copy of their own credit report.
Opening a credit card: A member requests a copy of their own credit report.
• Which is a step that can improve a Credit Score?Having multiple inquiries
Opening multiple credit cards in a short time period.Maintain oldest accounts, rather than
closing them.
Closing credit lines: Maintain oldest accounts, rather than closing them.
• Offering in-home baby-sitting would be an example of which option forincreasing
income?
Getting a second job Working overtime Setting long-term goals
Selling something: Getting a second job
• Which driving behavior will lead to increased gas expenses for the mem-ber?
Observing the speed limitAccelerating slowly Using cruise control
Braking rapidly: Braking rapidly
• If a member is looking for ways to decrease entertainment costs, whichrecommendation
should the financial counselor offer?
Meet friends for lunch.Take road trips.
Borrow items from a library.
Stay home.: Borrow items from a library.
• What should the financial counselor suggest to the member who wants tobegin saving?
Set aside what you received as a raise and live on the previous salary.
Make the largest possible deposits to savings whenever funds are available.Pay off all credit
card debit, before opening a savings account.
Save whatever is left after paying bills and living expenses.: Set aside what youreceived as a
raise and live on the previous salary.
• Which term describes a type of savings referred to as a nest egg, that helps members
through periods of reduced or lost income, that is built upwith regular deposits into an account
that is harder to access?
Periodic savings Safety-net savings
• What is an item that members do not need to bring to the initial meeting? Three recent pay
stubs
Insurance policies
Passport
Outstanding bills: Passport
• Which expenditure represents a form of secured debt?Signature loan
Payday loan
Credit card
Car loan: Car loan
• Which factor is included among the five C's of credit?Currency
Capacity Collaboration Contingency: Capacity
• Which financial literacy topic is appropriate to learn at the preschool age?Minimizing risk
Investing Borrowing
Wants vs. needs.: Wants vs. needs.
• Which life stage may be an appropriate time for parents to create spendingplans with
children?
Preschool Elementary school
Middle school
High School: Middle school
• What is one type of savings one should have in a comprehensive spendingplan?
Chairty Set-asideMonthly
Paycheck to paycheck: Set-aside
• Which of these is not a debt management option?Lifestyle adjustment
Debt settlementBankruptcy
Payday lenders: Payday lenders
• What is the snowball approach to allocating payments among debts?Opting out of deb
card-based overdraft
Starts with smallest debts and gradually takes on larger amounts.Paying high-interest debts
first
,Application of low fees and interest to the member's original loan amount: -
Starts with smallest debts and gradually takes on larger amounts.
• When should the financial counselor consider suggesting debt settle-ment?
There are escrowed funds.
The member needs pre-approved or guaranteed creditor settlements. The members accounts
are already severely delinquent or in collections.
There is a need to block creditors from having the option to take legal actionagainst the
member.: The members accounts are already severely delinquent orin collections.
• Which of the following is something a good action plan achieves?Allows the member to
continue spending the way they have been.
Makes it possible for members to address and solve specific financial prob-lems.
Provides a third-party release of information that outlines how data will beshared.
Makes it possible to purchase more furniture.: Makes it possible for members toaddress and
solve specific financial problems.
• Which of the following should not be asked during a follow-up meeting?Is the plan
working?
Are adjustments needed?
Which parts of the process were successful, and which failed?
Can you control your spending now?: Can you control your spending now?
• Which of the following is one of the items to track and measure duringfinancial
counseling sessions?
Number of membersIncome generation Finances
Program effectiveness: Number of members
• A good intake form will record what?All of the member's family
The member's credit score
The member's high school transcript
The Member's passwords: The member's credit score
• Which information is included on a credit report?Current Address
Medical historyDebt ratio
Pets: Current Address
• Which element has the largest single influence on a credit score?New credit
Credit history lengthTypes of credit used.
, Payment history: Payment history
• Which action produces a "soft" hit on a credit score?A member applies for a new line of
credit.
Student loans
A member requests a copy of their own credit report.
Opening a credit card: A member requests a copy of their own credit report.
• Which is a step that can improve a Credit Score?Having multiple inquiries
Opening multiple credit cards in a short time period.Maintain oldest accounts, rather than
closing them.
Closing credit lines: Maintain oldest accounts, rather than closing them.
• Offering in-home baby-sitting would be an example of which option forincreasing
income?
Getting a second job Working overtime Setting long-term goals
Selling something: Getting a second job
• Which driving behavior will lead to increased gas expenses for the mem-ber?
Observing the speed limitAccelerating slowly Using cruise control
Braking rapidly: Braking rapidly
• If a member is looking for ways to decrease entertainment costs, whichrecommendation
should the financial counselor offer?
Meet friends for lunch.Take road trips.
Borrow items from a library.
Stay home.: Borrow items from a library.
• What should the financial counselor suggest to the member who wants tobegin saving?
Set aside what you received as a raise and live on the previous salary.
Make the largest possible deposits to savings whenever funds are available.Pay off all credit
card debit, before opening a savings account.
Save whatever is left after paying bills and living expenses.: Set aside what youreceived as a
raise and live on the previous salary.
• Which term describes a type of savings referred to as a nest egg, that helps members
through periods of reduced or lost income, that is built upwith regular deposits into an account
that is harder to access?
Periodic savings Safety-net savings
