Ch 18-20
a number of members
b income generation
c finances
d program effectiveness
What is a, number of members.
Which is a step that can improve a credit score?
a having multiple inquiries
b opening multiple credit cards in a short time period
c maintain oldest accounts, rather than closing them
d closing credit lines
What is c, maintain oldest accounts, rather than closing them.
Which term describes a type of savings referred to as a nest egg, that helps members through periods of reduced or lost income, that is built up with regular deposits into an account that is harder to access?
a periodic savings
b safety-net savings
c long-term investment savings
d retirement savings
What is b, safety-net savings.
When does medical debt affect a member's credit score?
a a medical bill is submitted for payment a few days late
b a grace period is granted to the member by a credit reporting agency
c a health care provider sends a medical bill to the member
d a health care provider turns over the member's medical bills to collections
What is d, a health care provider turns over the member's medical bill to collections.
Under which circumstance, with the lender's permission, does the borrower sell the vehicle for less money than is owed?
a permanent payment reduction
b bankruptcy
c vehicle short sale
d when the borrower is having trouble paying due to a temporary disability
A good intake form will record what?
a all of the member's family
b the member's credit score
c the member's high school transcript
d the member's passwords
What is b, the member's credit score.
Offering in-home baby-sitting would be an example of which option for increasing income?
a getting a second job
b working overtime
c setting long-term goals
d selling something
What is a, getting a second job.
Which is a way members can establish good credit by?
a opening a secured credit card
b paying minimum payment on time
c taking out a loan
d cosigning on someone else's loan
What is a, opening a secured credit card.
The financial counselor is advising a member whose recently deceased parent had significant medical debt at the time of death. Which is not information the financial counselor should share with the member?
a medical bills for which the deceased's estate cannot pay typically remain unpaid
b the deceased's estate bills will be paid after beneficiaries get their inheritances
c states follow their own requirements for determining which creditors get paid back first
d individuals who are listed as beneficiaries will not be expected to pay the deceased's medical bills unless they are someway legally tied to the bills
What is b, the deceased's estate bills will be paid after beneficiaries get their inheritances.
When discussing the benefits of homeownership, which is not a tax benefit that can lower the cost of homeownership?
a mortgage interest deduction
b private mortgage insurance (PMI) deduction
c energy efficiency upgrades/repairs deduction
d down payments
What is d, down payments.
Which information is included on a credit report?
a current address
b medical history
c debt ratio
d pets
What is a, current address.
Which driving behavior will lead to increased gas expenses for the member?
a observing the speed limit
b accelerating slowly
c using cruise control
d braking rapidly
What is d, braking rapidly.
a capacity
b capital
c collateral
d character
What is d, character.
When addressing medical debit, the financial advisor should understand what?
a every job the member has held
b publicly traded companies
c medical billing errors
d private insurance
What is d, private insurance.
The financial counselor should advise that in lieu of substantial credit history, lenders may use what?
a a history of strong payments toward, rent, utilities, or other non-credit reporting loans
b employment history
c income
d adequate savings
What is a, a history of strong payments toward rent, utilities, or other non-credit reporting loans.
Which element has the largest single influence on a credit score?
a new credit
b credit history length
c types of credit used
d payment history
What is d, payment history.
If a member is looking for ways to decrease entertainment costs, which recommendation should the financial counselor offer?
a meet friends for lunch
b take road trips
c borrow items from a library
d stay home
What is c, borrow items from a library.
For which credit card source do typical offers include high interest rates and incentives?
a credit unions
b retailers
c finance companies
d banks
What is b, retailers.
Which is a disadvantage of leasing a car that should be considered?
a lower monthly payments
b lower upfront costs
c restricted mileage
d option to use a down payment
What is c, restricted mileage.
Earnest money demonstrates what to a seller?
a waiving of an inspection
b seriousness of a purchase offer
c no closing costs
d lower appraisal fees
What is b, seriousness of a purchase offer.
Which action produces a "soft" hit on a credit score?
a a member applies for a new line of credit
b student loans
c a member requests a copy of their own credit report
d opening a credit card
What is c, a member requests a copy of their own credit report.
What should the financial counselor suggest to the member who wants to begin saving?
a set aside what you received as a raise and live on the previous salary
b make the largest possible deposits to savings whenever funds are available
c pay off all credit card debit, before opening a savings account
d save whatever is left after paying bills and living expenses
What is a, set aside what you received as a raise and live on the previous salary.
Which is not a feature of prepaid cards?
a load fees
b line of credit
c monthly maintenance fee
d immediate funds
What is b, line of credit.
When closing a low credit score auto loan, which strategy should the financial counselor not use?
a explain that there is a brief grace period should the member miss a loan payment
b refer to previous discussions
c end the discussion with a brief summary
d discuss action steps if the member cannot pay
What is a, explain that there is a brief grace period should the member miss a loan payment.
During the homebuying process, if the home's appraised value is less than the home purchase price, what should the homebuyer expect?
a an increase in the required down payment
b structural repairs are needed
c no down payment is required
d the seller will pay the difference
What is a, an increase in the required down payment.