AFIP: Basic Certification Course (Latest 2025/2026 Update) Questions with Verified Answers | 100% Correct| Graded A.

AFIP: Basic Certification Course
(Latest 2025/2026 Update)
Questions with Verified Answers |
100% Correct| Graded A.

Question:

What is an acceleration clause??
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Answer:
B. If the customer defaults under the contract, the lender can make the
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full outstanding balance due and payable
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Question:
An installment sale contract may contain a provision that allows the
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lender to _______ property insurance if the customer fails to obtain
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insurance or lets it lapse.? i,- i,- i,- i,-




Answer:

A. force place
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Question:

What do the letters in UDAP stand for??
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,Answer:
E. Unfair, Deceptive, Acts, Practices
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Question:

What are the three required elements of a contract??
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Answer:
D. An offer, acceptance, and consideration.
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Question:
What are the criteria for "acceptance" of an offer??
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Answer:

D. All of the above
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Question:
The __________ issues UDAP violations to dealers, the __________ issues
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UDAAP violations to dealers.?
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Answer:

A. CFPB, FTC
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,Question:
(True/False) The dealer is the creditor in a typical credit transaction.?
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Answer:

True




Question:
As noted in the Truth in Lending Act and Reg. Z, if the customer owes
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more on the trade-in than the used car manager allowed, should the F&I
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manager do?? i,-




Answer:

D. None of the above
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Question:

Which of the following transactions are NOT regulation by TILA/Reg Z??
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Answer:

D. Both A and C
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Question:
(True/False)

, With the exception of some Precomputed Interest contracts used by
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secondary finance sources, all other installment sales contracts are simple
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interest or interest-bearing contracts. The following is a layman's
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explanation of a simple interest installment sale transaction. In a
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precomputed contract the finance charge is computed on the assumption i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-


the contract will run full term. If the customer terminates the agreement
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during the repayment term, he will receive a refund of the unearned
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premium.



In a simple interest- or interest-bearing installment sale agreement, the
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finance charge is computed daily and paid monthly throughout the term
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of the agreement. If the customer pays-off the vehicle before the
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scheduled end of the contract there is unearned finance charge money to
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refund, but it has been each month the contract has been in force. There
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is no refund of the unearned finance charge.?
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Answer:

True


Question:

The ________ issues UDAP violations to dealers, the ________ issues UDAAP
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violations to dealers.? i,- i,-




Answer:

CPFB, FTC i,-




Question: