FICEP Exam (2025 Edition) | Questions
& Answers | Complete Solutions |
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Section 1: Credit Union Foundations (Questions 1–5)
Question 1: Which of the following best represents the primary mission of a FICEP-certified
financial counselor? A) To sell credit union loan products B) To help members improve their
financial well-being through education and guidance C) To provide legal and tax advice D)
To make underwriting decisions for loan approvals
Correct Answer: B Rationale: Financial counselors focus on educating and empowering
members toward better financial health (FICEP Core Competencies, 2025). Selling products (A)
conflicts with member-first ethics; legal/tax advice (C) and underwriting (D) are outside the
counselor’s scope.
Question 2: The cooperative principle of "one member, one vote" in credit unions ensures:
A) Members with larger deposits have more voting power B) All members have equal voting
rights regardless of deposit size C) Only board members can vote on credit union policies D)
Voting rights are proportional to loan balances
Correct Answer: B Rationale: The "one member, one vote" principle guarantees equal
voting rights (FICEP Governance Standards, 2025). Deposit-based power (A), board-only
voting (C), and loan-based rights (D) contradict cooperative values.
Question 3: Which of the following is a key difference between credit unions and banks? A)
Credit unions are for-profit institutions B) Credit unions are member-owned and operate
under a not-for-profit cooperative model C) Banks offer lower interest rates on loans D)
Credit unions are regulated by the OCC
, Correct Answer: B Rationale: Credit unions are member-owned, not-for-profit
cooperatives (FICEP Credit Union Foundations, 2025). For-profit status (A) applies to banks;
interest rates (C) vary; OCC (D) regulates banks, not credit unions.
Question 4: The supervisory committee in a credit union is primarily responsible for: A)
Setting loan interest rates B) Ensuring the financial integrity of the credit union through
audits and compliance reviews C) Managing daily teller operations D) Approving all member
loan applications
Correct Answer: B Rationale: The supervisory committee oversees audits and financial
integrity (FICEP Credit Union Structure, 2025). Loan rates (A) are set by the
board/management; teller operations (C) and loan approvals (D) are staff responsibilities.
Question 5: Which of the following best describes the field of membership (FOM) in a credit
union? A) The geographic area where the credit union can advertise B) The defined group of
individuals eligible to join the credit union based on criteria like employment or
community C) The types of loans the credit union can offer D) The interest rates on share
accounts
Correct Answer: B Rationale: The field of membership (FOM) defines eligibility criteria
(e.g., employment, community) (FICEP Membership Policies, 2025). Advertising areas (A), loan
types (C), and interest rates (D) are unrelated.
Section 2: Financial Counseling Core Competencies (Questions 6–10)
Question 6: The first step in the financial counseling process should be: A) Recommending a
high-yield savings account B) Conducting a needs assessment to understand the
member’s financial situation and goals C) Skipping the budget review to save time D)
Directing the member to a third-party financial advisor
Correct Answer: B Rationale: A needs assessment ensures counseling is
member-centered (FICEP Counseling Process, 2025). Product recommendations (A) are
premature; skipping reviews (C) is unprofessional; third-party referrals (D) may not align with
member needs.
Question 7: Which of the following is a core ethical principle for financial counselors? A)
Prioritizing credit union profits over member needs B) Maintaining confidentiality and acting
& Answers | Complete Solutions |
GRADED A+ | 100% Verified &
Updated
Section 1: Credit Union Foundations (Questions 1–5)
Question 1: Which of the following best represents the primary mission of a FICEP-certified
financial counselor? A) To sell credit union loan products B) To help members improve their
financial well-being through education and guidance C) To provide legal and tax advice D)
To make underwriting decisions for loan approvals
Correct Answer: B Rationale: Financial counselors focus on educating and empowering
members toward better financial health (FICEP Core Competencies, 2025). Selling products (A)
conflicts with member-first ethics; legal/tax advice (C) and underwriting (D) are outside the
counselor’s scope.
Question 2: The cooperative principle of "one member, one vote" in credit unions ensures:
A) Members with larger deposits have more voting power B) All members have equal voting
rights regardless of deposit size C) Only board members can vote on credit union policies D)
Voting rights are proportional to loan balances
Correct Answer: B Rationale: The "one member, one vote" principle guarantees equal
voting rights (FICEP Governance Standards, 2025). Deposit-based power (A), board-only
voting (C), and loan-based rights (D) contradict cooperative values.
Question 3: Which of the following is a key difference between credit unions and banks? A)
Credit unions are for-profit institutions B) Credit unions are member-owned and operate
under a not-for-profit cooperative model C) Banks offer lower interest rates on loans D)
Credit unions are regulated by the OCC
, Correct Answer: B Rationale: Credit unions are member-owned, not-for-profit
cooperatives (FICEP Credit Union Foundations, 2025). For-profit status (A) applies to banks;
interest rates (C) vary; OCC (D) regulates banks, not credit unions.
Question 4: The supervisory committee in a credit union is primarily responsible for: A)
Setting loan interest rates B) Ensuring the financial integrity of the credit union through
audits and compliance reviews C) Managing daily teller operations D) Approving all member
loan applications
Correct Answer: B Rationale: The supervisory committee oversees audits and financial
integrity (FICEP Credit Union Structure, 2025). Loan rates (A) are set by the
board/management; teller operations (C) and loan approvals (D) are staff responsibilities.
Question 5: Which of the following best describes the field of membership (FOM) in a credit
union? A) The geographic area where the credit union can advertise B) The defined group of
individuals eligible to join the credit union based on criteria like employment or
community C) The types of loans the credit union can offer D) The interest rates on share
accounts
Correct Answer: B Rationale: The field of membership (FOM) defines eligibility criteria
(e.g., employment, community) (FICEP Membership Policies, 2025). Advertising areas (A), loan
types (C), and interest rates (D) are unrelated.
Section 2: Financial Counseling Core Competencies (Questions 6–10)
Question 6: The first step in the financial counseling process should be: A) Recommending a
high-yield savings account B) Conducting a needs assessment to understand the
member’s financial situation and goals C) Skipping the budget review to save time D)
Directing the member to a third-party financial advisor
Correct Answer: B Rationale: A needs assessment ensures counseling is
member-centered (FICEP Counseling Process, 2025). Product recommendations (A) are
premature; skipping reviews (C) is unprofessional; third-party referrals (D) may not align with
member needs.
Question 7: Which of the following is a core ethical principle for financial counselors? A)
Prioritizing credit union profits over member needs B) Maintaining confidentiality and acting
