AFC Questions with CORRECT Answers
Question:
Which one of the following desk or table shapes is more likely to create an atmosphere
of inequality? a. Round b. Square
C. Oval
d. Rectangle
Answer:
Rectangle
Question:
Credit can be very positive when used properly, and the highest interest rates are
charged on _____________________. a. HELOC lines of credit b. HELOC lump sum loans
c. Balance transfer loans
d. Cash advance loans.
Answer:
Cash advance loans.
Question:
A client has incurred a large amount of credit card debt during an extended stretch of
unemployment. Although now fully employed with a livable salary, she is struggling with
the organizational skills necessary to repay all of the accounts. She is concerned with
her ability to borrow funds to purchase a home within 5 years and wants to pay the
least amount of money possible. Which is the client's best option for dealing with this
debt situation? a. Chapter 7 Bankruptcy b. A Consumer Credit Counseling Agency Debt
Management Program (DMP)
c. A self-administered debt repayment plan
d. Chapter 13 Bankruptcy
Answer:
A Consumer Credit Counseling Agency Debt Management Program (DMP)
Question:
The government agency with enforcement powers on behalf of individual consumers is
the a. FRB b. FTC
c. CFPB
d. CPSC
Answer:
CFPB - Consumer Financial Protection Bureau
, Question:
A local university alumni organization member has been using time at the monthly
meetings to market their money management and investment services. They discuss
very complex investment products and are promising annual investment returns which
are double the current averages while saying they are "virtually risk-free." The president
of the alumni organization sent out a letter to all of the members stating how the
investment products were legitimate and that the president personally invested a great
sum of money with the specific money manager. Clients should be most concerned
about what type of investment fraud or scheme in this situation? a. Ponzi scheme b.
Affinity fraud
Answer:
Affinity fraud - Affinity frauds target members of identifiable groups, such as the elderly,
or religious or ethnic communities. The fraudsters involved in affinity scams often are -
or pretend to be - members of the group. They may enlist respected leaders from the
group to spread the word about the scheme, convincing them it is legitimate and
worthwhile. Many times, those leaders become unwitting victims of the fraud they
helped to promote. These scams exploit the trust and friendship that exists in groups of
people. Because of the tight-knit structure of many groups, outsiders may not know
about the affinity scam. Victims may try to work things out within the group rather than
notify authorities or pursue legal remedies. Affinity scams often involve "Ponzi" or
pyramid schemes where new investor money is used to pay earlier investors, making it
appear as if the investment is successful and legitimate.
Question:
A warranty that is required by state law is a. an implied warranty. b. an express
warranty.
c. a full warranty.
d. a limited warranty.
Answer:
an implied warranty.
Question:
When helping a client determine if they should rent or buy a home, the client should
know_________________. a. renting is the least expensive option over the long term b.
buying is the least expensive option over the long term
c. condominiums do not have HOA fees
d. single family homes do not have HOA fees
Answer:
buying is the least expensive option over the long term
Question:
Which one of the following desk or table shapes is more likely to create an atmosphere
of inequality? a. Round b. Square
C. Oval
d. Rectangle
Answer:
Rectangle
Question:
Credit can be very positive when used properly, and the highest interest rates are
charged on _____________________. a. HELOC lines of credit b. HELOC lump sum loans
c. Balance transfer loans
d. Cash advance loans.
Answer:
Cash advance loans.
Question:
A client has incurred a large amount of credit card debt during an extended stretch of
unemployment. Although now fully employed with a livable salary, she is struggling with
the organizational skills necessary to repay all of the accounts. She is concerned with
her ability to borrow funds to purchase a home within 5 years and wants to pay the
least amount of money possible. Which is the client's best option for dealing with this
debt situation? a. Chapter 7 Bankruptcy b. A Consumer Credit Counseling Agency Debt
Management Program (DMP)
c. A self-administered debt repayment plan
d. Chapter 13 Bankruptcy
Answer:
A Consumer Credit Counseling Agency Debt Management Program (DMP)
Question:
The government agency with enforcement powers on behalf of individual consumers is
the a. FRB b. FTC
c. CFPB
d. CPSC
Answer:
CFPB - Consumer Financial Protection Bureau
, Question:
A local university alumni organization member has been using time at the monthly
meetings to market their money management and investment services. They discuss
very complex investment products and are promising annual investment returns which
are double the current averages while saying they are "virtually risk-free." The president
of the alumni organization sent out a letter to all of the members stating how the
investment products were legitimate and that the president personally invested a great
sum of money with the specific money manager. Clients should be most concerned
about what type of investment fraud or scheme in this situation? a. Ponzi scheme b.
Affinity fraud
Answer:
Affinity fraud - Affinity frauds target members of identifiable groups, such as the elderly,
or religious or ethnic communities. The fraudsters involved in affinity scams often are -
or pretend to be - members of the group. They may enlist respected leaders from the
group to spread the word about the scheme, convincing them it is legitimate and
worthwhile. Many times, those leaders become unwitting victims of the fraud they
helped to promote. These scams exploit the trust and friendship that exists in groups of
people. Because of the tight-knit structure of many groups, outsiders may not know
about the affinity scam. Victims may try to work things out within the group rather than
notify authorities or pursue legal remedies. Affinity scams often involve "Ponzi" or
pyramid schemes where new investor money is used to pay earlier investors, making it
appear as if the investment is successful and legitimate.
Question:
A warranty that is required by state law is a. an implied warranty. b. an express
warranty.
c. a full warranty.
d. a limited warranty.
Answer:
an implied warranty.
Question:
When helping a client determine if they should rent or buy a home, the client should
know_________________. a. renting is the least expensive option over the long term b.
buying is the least expensive option over the long term
c. condominiums do not have HOA fees
d. single family homes do not have HOA fees
Answer:
buying is the least expensive option over the long term
