FICEP EXAM REVIEW QUESTIONS WITH ALL CORRECT ANSWERS (VERIFIED ANSWERS)
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Module
FICEP
Institution
FICEP
FICEP EXAM REVIEW QUESTIONS WITH ALL CORRECT ANSWERS (VERIFIED ANSWERS)
Pay more on principal - Answer-increasing monthly payment beyond the minimum required by the credit issuer.
Roll up payments - Answer-Member dedicates a specific amount to repaying debt. The amount does not change as debt ...
FICEP EXAM REVIEW QUESTIONS
WITH ALL CORRECT ANSWERS
(VERIFIED ANSWERS)
Pay more on principal - Answer-increasing monthly payment beyond the minimum
required by the credit issuer.
Roll up payments - Answer-Member dedicates a specific amount to repaying debt. The
amount does not change as debt is repaid, but will be reallocated amount remaining
debts.
Advantages to buying rather than leasing - Answer-Owning the car, payments end at
pay off, can sell car, not locked in contract
Advantages to leasing rather than buying - Answer-Lower payments, lower up front
costs, option to use down payment, a factory warranty
Disadvantages to leasing rather than buying - Answer-Early termination fee, higher
insurance, mileage may be restricted, fees for excessive wear and tear, lack of equity,
higher credit requirements, lease contract
What can I afford to buy and maintain? - Answer-Questions to ask before buying a
vehicle - Includes purchase price, finance charges, gas, insurance, license plate, and
maintenance costs.
How will I use the vehicle? - Answer-Questions to ask before buying a vehicle -
Depends on location and use.
How long do I plan to keep the vehicle? - Answer-Questions to ask before buying a
vehicle - How long do I plan to keep the vehicle? (Just remember this one).
How will it suit my needs during the time I expect to own it? - Answer-Questions to ask
before buying a vehicle - The issues are considerably different if one if driving a vehicle
3 months vs driving it as long as possible.
Will it maintain its value? - Answer-Questions to ask before buying a vehicle - Will it
maintain its value? (Just remember this one).
Emergency savings - Answer-Helps one cope when the unthinkable occurs. Reserved
for dire occurrences.
, Emergency savings - Answer-Should contain
- One month's mortgage/Rent
- One month's income
- Keep adding indefinitely
Set-aside savings - Answer-Helps member budget for large expenses that are outside
the scope of day-to-day spending.
Retirement savings - Answer-Money a member will control in addition to their retirement
income.
1. Give members a specific list of steps to complete
2. State when members will take each step
3. Make it possible for members to address and solve specific financial problems.
4. Helps members learn how to develop additional action plans alone to solve future
problems. - Answer-4 goals achieved by a good action plan
1. Easy to start
2. it adds up
3. less stress
4. empowering
5. goals within reach - Answer-Benefits of saving
Periodic savings - Answer-Base savings. Members contribute to regularly and use for
occasional expenses.
Safety-net savings - Answer-Helps member through a period of reduced or lost income.
Harder to access.
Top savings - For long terms needs - Answer-Possible once debt is eliminated. Long
term investment savings.
True - Answer-True or False - Divorce does not have a direct impact on credit standing.
False - Answer-True or False - A divorce decree nullifies contracts with lenders that
both spouses previously signed.
regressive - Answer-A _____ tax charges the same percentage of the cost of a good or
service, no matter what the taxpayer earns. (Sales tax, gas taxes, and liquor taxes are
examples)
progressive - Answer-A _____ tax requires a taxpayer to pay more tax as their income
increases. (Federal and state income taxes are examples)
tax professional - Answer-Complex tax situations might require members to hire a
_____.
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