1|Page
AFIP Basic Certification Actual Exam Newest 2025-2026
AFIP Basic Certification Exam Preparation/AFIP Basic
Certification Practice Exam With Complete Questions And
Correct Answers| Brand New Version!
If that dealership continues to run the ad, what are the potential
penalties?
C. The dealer could be required to pay a fine of up to $43,792 per day,
per violation.
The criminal penalties for an F&I practitioner violating the TILA/Reg. Z
or CLA/Reg. M can result in a fine of up to $_______ and up to _____
year(s) in jail or a combination of both.
A. $5,000, 1
(True/False)
Hold check money constitutes a deferred down payment and is included
in the amount paid down. It is not recorded on the contract.
True
,2|Page
The term Contract Provisions is a TILA box statement. It alerts the
customer to the important information found on the front and back of the
agreement. If in reading the contract provisions, the customer asked you
to explain the Acceleration Clause, your response would be?
B. A contractual right to accelerate the balance of the installment sale
agreement if the customer fails to make timely monthly payments or to
secure and maintain the required property insurance.
Which of the following statements are not true in regards to how
deferred down payments are treated under TILA/Reg Z?
A. The deferred down payment must be paid in full before the second
otherwise regularly scheduled payment.
B. A finance charge can't be assessed on a deferred down payment.
C. The amount of the deferred down payment is not included in the
amount financed on the installment sale agreement.
D. Unless superseded by state law (e.g., California), the pick-up
payment or hold check arrangement may be (but is not required to be)
recorded on the installment sale contract.
All of the statements are true.
,3|Page
Which of the following terms do NOT qualify as a triggering term?
A. Amount or percentage of any down payment.
B. Number of payments or contract term.
C. Amount of any payment.
D. The dollar amount of any finance charge.
E. The name of the financing source accepting assignment in the
installment sale agreements.
E. The name of the financing source accepting assignment in the
installment sale agreements.
If an installment sale advertisement includes any one of the triggering
terms, which of the following must also be included in the ad?
A. The amount or percentage of the down payment.
B. The terms of repayment.
C. The APR
D. The name of the funding source to whom the contract will be
assigned.
All of the above except D
, 4|Page
(True/False)
According to Reg. Z, it is necessary to disclose APR and the Finance
Charge.
True
What are the potential penalties for a Dealer if they continue to run an ad
after receiving a cease and desist order?
C. $43,792 per day, per violation
The total sale price is ______ the largest number on the installment
contract.
D. Alway
What are the liabilities for a dealer if the court finds against a dealer for
a civil violation of TILA/Reg Z. or CLA/Reg. M?
D. All of the above.
AFIP Basic Certification Actual Exam Newest 2025-2026
AFIP Basic Certification Exam Preparation/AFIP Basic
Certification Practice Exam With Complete Questions And
Correct Answers| Brand New Version!
If that dealership continues to run the ad, what are the potential
penalties?
C. The dealer could be required to pay a fine of up to $43,792 per day,
per violation.
The criminal penalties for an F&I practitioner violating the TILA/Reg. Z
or CLA/Reg. M can result in a fine of up to $_______ and up to _____
year(s) in jail or a combination of both.
A. $5,000, 1
(True/False)
Hold check money constitutes a deferred down payment and is included
in the amount paid down. It is not recorded on the contract.
True
,2|Page
The term Contract Provisions is a TILA box statement. It alerts the
customer to the important information found on the front and back of the
agreement. If in reading the contract provisions, the customer asked you
to explain the Acceleration Clause, your response would be?
B. A contractual right to accelerate the balance of the installment sale
agreement if the customer fails to make timely monthly payments or to
secure and maintain the required property insurance.
Which of the following statements are not true in regards to how
deferred down payments are treated under TILA/Reg Z?
A. The deferred down payment must be paid in full before the second
otherwise regularly scheduled payment.
B. A finance charge can't be assessed on a deferred down payment.
C. The amount of the deferred down payment is not included in the
amount financed on the installment sale agreement.
D. Unless superseded by state law (e.g., California), the pick-up
payment or hold check arrangement may be (but is not required to be)
recorded on the installment sale contract.
All of the statements are true.
,3|Page
Which of the following terms do NOT qualify as a triggering term?
A. Amount or percentage of any down payment.
B. Number of payments or contract term.
C. Amount of any payment.
D. The dollar amount of any finance charge.
E. The name of the financing source accepting assignment in the
installment sale agreements.
E. The name of the financing source accepting assignment in the
installment sale agreements.
If an installment sale advertisement includes any one of the triggering
terms, which of the following must also be included in the ad?
A. The amount or percentage of the down payment.
B. The terms of repayment.
C. The APR
D. The name of the funding source to whom the contract will be
assigned.
All of the above except D
, 4|Page
(True/False)
According to Reg. Z, it is necessary to disclose APR and the Finance
Charge.
True
What are the potential penalties for a Dealer if they continue to run an ad
after receiving a cease and desist order?
C. $43,792 per day, per violation
The total sale price is ______ the largest number on the installment
contract.
D. Alway
What are the liabilities for a dealer if the court finds against a dealer for
a civil violation of TILA/Reg Z. or CLA/Reg. M?
D. All of the above.
