FICEP EXAM
A rule of thumb for education funding is known as the:
a. savings principles
b. Savings rule
c. Rule of thirds
d. Rule of fourths - ANSWERS-Tule of thirds
Student loan refinancing means
a. Taking out a new loan to pay off existing loans
b. One will never lose loan benefits
c. A federal student loan may be forgiven or discharged
d. Only federal loans can be included in a refinance - ANSWERS-
Taking out a new loan to pay off existing loans
One needs to consider the lending amount (minimum and maximum),
income requirements, and cosigner release when
a. Considering student loan default.
b. Comparing refinance companies.
c. Comparing mandatory and general forbearance.
d. Considering mandatory forbearance. - ANSWERS-Comparing
refinance companies
,Which of the following statements is false?
a. Borrowers should avoid defaulting on student loans
b. Social security wages may be garnished if a federal student loan is
in default
c. Wages can not be garnished if a federal student loan is in default
d. If a federal student loan is in default, it will be turned over to a
collection agency - ANSWERS-Wages can not be garnished if a
federal student loan is in default
Which is false? Seniors may have student loan debt because they:
a. Discharged it in their bankruptcy
b. Cosigned loans for children
c. Consigned loans for grandchildren
d. Took out a parent PLUS loan - ANSWERS-Discharged it in their
bankruptcy
Which of the following is not a way in which repossessions can
occur?
a. Self-help (creditors retrieves vehicle and may do so without
debtor's knowledge)
b. Judicial (creditor obtains a court order to work with legal
authorities)
c. Voluntary surrender
, d. Cure default - ANSWERS-Cure default
Which of the following is not a secondary product that can be added
to a vehicle loan to help in case an emergency occurs?
a. GAP insurance
b. Full coverage automobile insurance
c. Credit life and disability insurance
d. Extended warranty - ANSWERS-Full coverage automobile
insurance
Which of the following statements is true?
a. Owning generally builds property equity
b. Owning a home is always the best investment
c. Renting is best if one is likely to remain in one place for many
years
d. Owning is generally less expensive - ANSWERS-Owning generally
builds property equity
Which if the following statement is false?
a. Two types of home equity borrowing are available: home equity
loans and HELOCs
A rule of thumb for education funding is known as the:
a. savings principles
b. Savings rule
c. Rule of thirds
d. Rule of fourths - ANSWERS-Tule of thirds
Student loan refinancing means
a. Taking out a new loan to pay off existing loans
b. One will never lose loan benefits
c. A federal student loan may be forgiven or discharged
d. Only federal loans can be included in a refinance - ANSWERS-
Taking out a new loan to pay off existing loans
One needs to consider the lending amount (minimum and maximum),
income requirements, and cosigner release when
a. Considering student loan default.
b. Comparing refinance companies.
c. Comparing mandatory and general forbearance.
d. Considering mandatory forbearance. - ANSWERS-Comparing
refinance companies
,Which of the following statements is false?
a. Borrowers should avoid defaulting on student loans
b. Social security wages may be garnished if a federal student loan is
in default
c. Wages can not be garnished if a federal student loan is in default
d. If a federal student loan is in default, it will be turned over to a
collection agency - ANSWERS-Wages can not be garnished if a
federal student loan is in default
Which is false? Seniors may have student loan debt because they:
a. Discharged it in their bankruptcy
b. Cosigned loans for children
c. Consigned loans for grandchildren
d. Took out a parent PLUS loan - ANSWERS-Discharged it in their
bankruptcy
Which of the following is not a way in which repossessions can
occur?
a. Self-help (creditors retrieves vehicle and may do so without
debtor's knowledge)
b. Judicial (creditor obtains a court order to work with legal
authorities)
c. Voluntary surrender
, d. Cure default - ANSWERS-Cure default
Which of the following is not a secondary product that can be added
to a vehicle loan to help in case an emergency occurs?
a. GAP insurance
b. Full coverage automobile insurance
c. Credit life and disability insurance
d. Extended warranty - ANSWERS-Full coverage automobile
insurance
Which of the following statements is true?
a. Owning generally builds property equity
b. Owning a home is always the best investment
c. Renting is best if one is likely to remain in one place for many
years
d. Owning is generally less expensive - ANSWERS-Owning generally
builds property equity
Which if the following statement is false?
a. Two types of home equity borrowing are available: home equity
loans and HELOCs
