1|Page
AFIP BASIC CERTIFICATION LATEST 2025/2026 ACTUAL EXAM WITH
COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS (100%
VERIFIED ANSWERS) |ALREADY GRADED A+| ||PROFESSOR
VERIFIED|| ||BRANDNEW!!!||
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. - ANSWER-All of the above except D
(True/False)
According to Reg. Z, it is necessary to disclose APR and the
Finance Charge. - ANSWER-True
,2|Page
What are the potential penalties for a Dealer if they continue to
run an ad after receiving a cease and desist order? - ANSWER-C.
$43,792 per day, per violation
The total sale price is ______ the largest number on the
installment contract. - ANSWER-D. Always
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? -
ANSWER-D. All of the above.
If the appraised value of a vehicle traded-in is lower than the
outstanding balance on the installment sale agreement, other
entries on the installment sale agreement can be altered to offset
the deficiency. Which of the following options are allowed? -
ANSWER-D. Neither A or B
A subprime or nonprime financing source is used and an
acquisition fee is charged. This fee _____ - ANSWER-B. cannot
be passed on to the customer, it must be deducted from the gross
or profit margin.
,3|Page
(True/False)
The industry standard for the APR used to quote a monthly
payment before the customer's credit worthiness is known (a
credit tier cannot be determined) is to use a running average of
the new and used vehicle APR's assessed over the previous 60
or 90 days. On a First-Pencil Payment Quote the customer is told
the cost of credit used to compute the monthly payment was
based on the average for our store. Your payment will be higher
or lower based on your credit worthiness.
To use any other method could be viewed by the regulators or
Plaintiff's Bar as payment packing as to rate. - ANSWER-True
If there is physical damage to the vehicle due to a car accident
that occurs prior to the lease end termination will GAP cover
damages? - ANSWER-No
, 4|Page
(True/False)
According to Reg. M, early termination information has to be
disclosed. - ANSWER-True
What is the criminal penalty for an F&I practitioner that violates
the CLA/Reg. M? - ANSWER-C. $5,000 fine and up to one year in
jail
What are the potential liabilities for a dealership that violates
CFA/Reg. M triggering term advertising requirements? -
ANSWER-D. All of the above
(True/False)
CLA is implemented by Regulation M? - ANSWER-True
The CLA and Reg. M permit lease agreements to be printed in
any language, but they must be available in ________ -
ANSWER-A. English
AFIP BASIC CERTIFICATION LATEST 2025/2026 ACTUAL EXAM WITH
COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS (100%
VERIFIED ANSWERS) |ALREADY GRADED A+| ||PROFESSOR
VERIFIED|| ||BRANDNEW!!!||
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. - ANSWER-All of the above except D
(True/False)
According to Reg. Z, it is necessary to disclose APR and the
Finance Charge. - ANSWER-True
,2|Page
What are the potential penalties for a Dealer if they continue to
run an ad after receiving a cease and desist order? - ANSWER-C.
$43,792 per day, per violation
The total sale price is ______ the largest number on the
installment contract. - ANSWER-D. Always
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? -
ANSWER-D. All of the above.
If the appraised value of a vehicle traded-in is lower than the
outstanding balance on the installment sale agreement, other
entries on the installment sale agreement can be altered to offset
the deficiency. Which of the following options are allowed? -
ANSWER-D. Neither A or B
A subprime or nonprime financing source is used and an
acquisition fee is charged. This fee _____ - ANSWER-B. cannot
be passed on to the customer, it must be deducted from the gross
or profit margin.
,3|Page
(True/False)
The industry standard for the APR used to quote a monthly
payment before the customer's credit worthiness is known (a
credit tier cannot be determined) is to use a running average of
the new and used vehicle APR's assessed over the previous 60
or 90 days. On a First-Pencil Payment Quote the customer is told
the cost of credit used to compute the monthly payment was
based on the average for our store. Your payment will be higher
or lower based on your credit worthiness.
To use any other method could be viewed by the regulators or
Plaintiff's Bar as payment packing as to rate. - ANSWER-True
If there is physical damage to the vehicle due to a car accident
that occurs prior to the lease end termination will GAP cover
damages? - ANSWER-No
, 4|Page
(True/False)
According to Reg. M, early termination information has to be
disclosed. - ANSWER-True
What is the criminal penalty for an F&I practitioner that violates
the CLA/Reg. M? - ANSWER-C. $5,000 fine and up to one year in
jail
What are the potential liabilities for a dealership that violates
CFA/Reg. M triggering term advertising requirements? -
ANSWER-D. All of the above
(True/False)
CLA is implemented by Regulation M? - ANSWER-True
The CLA and Reg. M permit lease agreements to be printed in
any language, but they must be available in ________ -
ANSWER-A. English
