FICEP (Financial Counseling Certification
Program) Final Exam Study Guide Complete
Questions With Complete Solutions 100%
Accurate Already Graded A+ -- Just
Released.
1. When you analyze debt, what does this include? (6)
(CHAPTER 12) - ANSWER ✓ 1. Who are you
borrowing from? The member may rely on a credit union,
payday lenders, credit cards, etc.
2. What is the cost? Calculate the interest rate and cost for
each type of borrowing.
3. Where are you spending the borrowed money?
4. When do you borrow? There may be a pattern to when
members are susceptible to debt or how they use credit.
5. Why do you borrow? Discuss what makes it
"impossible" for members to wait until they have saved
enough to pay for purchases, or why they cannot fit the
purchases into a monthly cycle.
,6. How much do you owe? Adding up the total can be
surprising for members who typically consider only the
amount of each debt, rather than its cumulative impact.
2. When you analyze credit, what does this include? (5)
(CHAPTER 12) - ANSWER ✓ 1. Cash flow shows how
income and expenses are balanced during a specific
period.
2. Credit report provides a credit history including debt
repayment practices for an individual.
3. Credit score is used to predict a member's ability to
repay debt or pay bills. Members are rewarded for high
scores with lower interest rates and punished for low
scores with high rates and may have difficulty obtaining
loans.
4. Debt ratio compares total debt to annual income to
show if a member can afford new debt. This ratio
typically ignores the impact of high monthly expenses on
cash flow.
5. Net worth reflects a member's equity position. The total
assets minus total liabilities
,3. What are the 5 C's of credit? (CHAPTER 12) -
ANSWER ✓ 1. Character is based on objective measures
of past behavior likely to affect an individual's financial
actions: length of residency, length of employment, nature
of credit history, and frequency of credit inquiries.
2. Capacity indicates how much debt a member can
realistically repay, based on current income and expenses.
3. Capital is the amount of money a member has.
4. Collateral is an item that can be taken and sold by a
lender if a borrower fails to pay as agreed, usually a
vehicle or a house. Thus, secured loans are secure because
the lender will take the collateral.
5. Conditions is the purpose of the loan, amount being
asked for, current interest rates, and state of the economy.
4. What are the different 5 different life stages to have
goals? (5) (CHAPTER 13) - ANSWER ✓ 1. Elementary
school
2. Middle school
3. High school
4. Adulthood
, 5. Retirement
5. Review the Financial Literacy topics by life stage
chart. (CHAPTER 13) PG. 42 - ANSWER ✓ Review the
Financial Literacy topics by life stage chart. (CHAPTER
13) PG. 42
6. Which statement describes a financial counseling truth?
- ANSWER ✓ Counselors cannot help everyone
7. Which approach to educating employees about the
benefits of financial counseling is ideal? - ANSWER ✓
Multiple methods
8. Which action helps the financial counselor control the
interview and other member interactions? - ANSWER ✓
Keeping the focus on finance
Program) Final Exam Study Guide Complete
Questions With Complete Solutions 100%
Accurate Already Graded A+ -- Just
Released.
1. When you analyze debt, what does this include? (6)
(CHAPTER 12) - ANSWER ✓ 1. Who are you
borrowing from? The member may rely on a credit union,
payday lenders, credit cards, etc.
2. What is the cost? Calculate the interest rate and cost for
each type of borrowing.
3. Where are you spending the borrowed money?
4. When do you borrow? There may be a pattern to when
members are susceptible to debt or how they use credit.
5. Why do you borrow? Discuss what makes it
"impossible" for members to wait until they have saved
enough to pay for purchases, or why they cannot fit the
purchases into a monthly cycle.
,6. How much do you owe? Adding up the total can be
surprising for members who typically consider only the
amount of each debt, rather than its cumulative impact.
2. When you analyze credit, what does this include? (5)
(CHAPTER 12) - ANSWER ✓ 1. Cash flow shows how
income and expenses are balanced during a specific
period.
2. Credit report provides a credit history including debt
repayment practices for an individual.
3. Credit score is used to predict a member's ability to
repay debt or pay bills. Members are rewarded for high
scores with lower interest rates and punished for low
scores with high rates and may have difficulty obtaining
loans.
4. Debt ratio compares total debt to annual income to
show if a member can afford new debt. This ratio
typically ignores the impact of high monthly expenses on
cash flow.
5. Net worth reflects a member's equity position. The total
assets minus total liabilities
,3. What are the 5 C's of credit? (CHAPTER 12) -
ANSWER ✓ 1. Character is based on objective measures
of past behavior likely to affect an individual's financial
actions: length of residency, length of employment, nature
of credit history, and frequency of credit inquiries.
2. Capacity indicates how much debt a member can
realistically repay, based on current income and expenses.
3. Capital is the amount of money a member has.
4. Collateral is an item that can be taken and sold by a
lender if a borrower fails to pay as agreed, usually a
vehicle or a house. Thus, secured loans are secure because
the lender will take the collateral.
5. Conditions is the purpose of the loan, amount being
asked for, current interest rates, and state of the economy.
4. What are the different 5 different life stages to have
goals? (5) (CHAPTER 13) - ANSWER ✓ 1. Elementary
school
2. Middle school
3. High school
4. Adulthood
, 5. Retirement
5. Review the Financial Literacy topics by life stage
chart. (CHAPTER 13) PG. 42 - ANSWER ✓ Review the
Financial Literacy topics by life stage chart. (CHAPTER
13) PG. 42
6. Which statement describes a financial counseling truth?
- ANSWER ✓ Counselors cannot help everyone
7. Which approach to educating employees about the
benefits of financial counseling is ideal? - ANSWER ✓
Multiple methods
8. Which action helps the financial counselor control the
interview and other member interactions? - ANSWER ✓
Keeping the focus on finance
