AFC Certification Pre-Assessment with all Correct & 100% Verified Answers
|Actual Complete Exam |Already Graded A+
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
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.
Which of the following factors affects a credit score?
a. The number of bank accounts recently opened.
b. The number of new credit cards recently opened.
c. The number of people authorized to use a credit card.
d. The number of debit cards used each month. - (ANSWER)The number of new credit cards recently
opened.
A married couple would like to examine the potential of using their home equity to borrow funds in
order to remodel their kitchen at a cost of $17,000. The couple purchased the home 3 years ago for its
market value of $135,000. The interest rate on their 30-year fixed-rate mortgage is 4.25% and they were
able to put down a 5% down payment towards the purchase. The market value of the home has grown
at 2.5% per year and the current balance owed on the mortgage is $121,478. If the local Credit Union is
offering to lend the couple up to 80% of their home equity in the form of a home equity loan to remodel
their kitchen, will they be able to borrow the money necessary to complete the project this third year?
How much of the homeowner's equity will they need?
a. Yes, they only need to borrow 71% of their homeowner's equity.
, AFC Certification Pre-Assessment with all Correct & 100% Verified Answers
|Actual Complete Exam |Already Graded A+
b. Yes, they only need to borrow 63% of their homeowner's
c. No, they would need to borrow 82% of t - (ANSWER)Yes, they only need to borrow 71% of their
homeowner's equity.
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)
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
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
|Actual Complete Exam |Already Graded A+
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
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.
Which of the following factors affects a credit score?
a. The number of bank accounts recently opened.
b. The number of new credit cards recently opened.
c. The number of people authorized to use a credit card.
d. The number of debit cards used each month. - (ANSWER)The number of new credit cards recently
opened.
A married couple would like to examine the potential of using their home equity to borrow funds in
order to remodel their kitchen at a cost of $17,000. The couple purchased the home 3 years ago for its
market value of $135,000. The interest rate on their 30-year fixed-rate mortgage is 4.25% and they were
able to put down a 5% down payment towards the purchase. The market value of the home has grown
at 2.5% per year and the current balance owed on the mortgage is $121,478. If the local Credit Union is
offering to lend the couple up to 80% of their home equity in the form of a home equity loan to remodel
their kitchen, will they be able to borrow the money necessary to complete the project this third year?
How much of the homeowner's equity will they need?
a. Yes, they only need to borrow 71% of their homeowner's equity.
, AFC Certification Pre-Assessment with all Correct & 100% Verified Answers
|Actual Complete Exam |Already Graded A+
b. Yes, they only need to borrow 63% of their homeowner's
c. No, they would need to borrow 82% of t - (ANSWER)Yes, they only need to borrow 71% of their
homeowner's equity.
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)
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
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
