FICEP Test 2023 Questions and Answers Complete

FICEP Test 2023 Questions and Answers Complete Money avoidance is the idea that money is evil or ______________ - undeserved The idea that money is the way to solve all a member's problems is money ______________ - worship Money ____________ is the member's belief that wealth is tied to self-worth. Money is seen as a member's way to one-up others. - Status Money vigilance is a member's perceived need for ___________ about their financial matters. - secrecy The ideal spending cycle a member should strive to be in is _________ / _______________ / ____________. This group pays themselves first - earn save spend Factors impacting money _____________ can include childhood experiences, emotional disorders, out of control spending or ignoring the problem. - attitudes The most basic need members have is ___________________ needs like food, shelter, and clothing. This is the _____ of the pyramid on Maslow's hierarchy of needs. - physiological, base The _______ brain sees things in a logical way while the ______ brain may add color and creativity to the thought process. - left, right A right brain person could benefit from a list with ________________ while you are sharing information. - illustrations The ____________ zone of the Johari Window includes things known to others (counselor) but unknown to self (member). - blind The three types of financial counseling are ____________, _______________, and ____________. - productive, preventative, and remedial A counselor should seek to understand all the facts bout a client's circumstances before generating alternatives using both _____________ and _______________ cues. - verbal, nonverbal There are four steps in the member's change process. In sequential order they are: 1. Recognizing the _________ for change. 2. Gather ___________ and introduce new ideas. 3. ______________ plan as needed. 4. Make _____________ a part of the member's habits. - Need information revise changes Help members prioritize essentials so they spend on ___________ instead of ____________. - needs, wants Examining forces for or against a specific action are part of a _____________ ______________ _____________________. - Force field analysis The counseling process contains six steps. In sequential order, they are: 1. ____________ member data 2. Establish clear financial _____________ and objectives. 3. _________________ data. 4. _____________ a spending, debt repayment and action plan 5. _______________ plan. 6. Monitor, evaluate, and ______________ as needed. - collect goals analyze develop implement adjust a ____________ plan looks at the sources of income and where clients spend their money. - spending Cash _____ is the term to define money in and out of a client's budget. - flow T or F At least 3 recent paycheck stubs should be reviewed when gathering a member's financial information. - True When analyzing expenses it is important to consider a 12 month cycle to take ____________ ______________ into account which include rising utility costs for additional air in the summer and heat in winter as well as back to school expenses every fall. - seasonal variations Options for increasing ______________ include working overtime, getting a second job, selling something and setting long term goals - income Accelerating debt repayment can be done by paying more on principal, rolling up payments of the same amount monthly, or paying off ____________ _____________ debts first. - high interest T or F Since 2010 federal law requires consumers to have a choice to opt-in to overdraft programs. - True ____________ loans are the costliest way to handle cash flow problems. - Payday When planning a trip, choose the vehicle that gives the best ___________ for that trip. - mileage Secure vehicle financing for a vehicle ____________ you shop and consider how much you can afford for the vehicle plus insurance and upkeep. - before _____________ savings helps members cope with unexpected expenses. - Emergency ___________ _________________ savings helps members plan for known future expenses. - Set aside ________________ savings have to be more than just a deposit to a 401(k) plan. - Retirement Spending allowances should be broken down into __________ amounts - weekly T or F It is important that counselors ask a member to sign a contract to reinforce and stick with the plan they have chosen or it will not work. - False One of the ways members can get started saving is to set aside the net amount of a ________ in a savings account and continue to live on what their prior pay. - raise _________________ _________ savings is a nest egg to help members through a period of lost or reduced income. This is also the middle tier of the savings pyramid. - Safety net When working with members one of the most important things is to be understanding and acknowledge a member's ________________. - Apprehension Writing down _____ goals is the first step to having a productive money conversation with families. - individual Money management roles are often learned during ______________. - Childhood T or F It is best to leave children out of the financial counseling sessions and allow the adults to handle all financial conversations with the counselor. - False Disagreement over money is the most frequently cited reason for ____________. - divorce T or F Marital status is not a factor in the credit scoring systems. - True When budgeting after a divorce, it is recommended that a member be conservative and choose ___________ that is less expensive that one can afford until they have a better understanding on their new financial status. - Housing A challenge of self-employment includes maintaining a reliable source of income and preparing for ______________ fluctuations in income - seasonal Small businesses can acquire __________ from lines of credit, credit cards, personal loans and savings - Capital Paying bills ________ ____________ is the most important thing members can do to improve credit rating - on time The three main credit reporting agencies are ____________, ______________, and _______________. Each calculate credit scores individually. - Equifax, Experian, Transunion Credit reports contain identifying information, __________ history, public records including collections and credit inquiries in the last 2 years. - payment T or F Income information is included in a credit report - False Members can get a free copy of their credit report _________ a year - once Credit reporting agencies investigate all claim disputes within ________ days. - 30 FICO scores range from a low of 300 to a high of _________. - 850 ____________ is the amount of available credit a member has an dits accounts for 30% of a credit score. - capacity The largest influence on a credit score is a member's payment _________ and it accounts for 35% of a credit score. - history __________ payments can decrease a credit score up to 70