CUNA Financial Counselor Practice Exam

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• Which consideration is essential when leasing a vehicle?
• Which of the following is NOT a filing status for tax purposes?
• Which spending cycle indicates a belief that one deserves immediate gratification?
• What does reframing involve?
• What is one reason for developing a long-term view of finances when dealing with seasonal income?
• What outcome is aimed for by promoting financial literacy during campaigns?
• What reflects the mindset of living paycheck to paycheck?
• Which type of POA is effective immediately for financial matters?
• What aspect of Johari's Window is characterized as being known to oneself but not to others?
• What is a characteristic of a progressive tax system?
• Which product can help protect an asset from catastrophic events?
• Who should be contacted immediately after an instance of identity theft?
• What can the government do if a borrower defaults on federal loans?
• Renting a house is best if a person
• Which of the following is a clue indicating possible fraud?
• Which type of counseling is often referred to other professionals?
• What is the first step in reducing debt?
• What is the primary concept of risk pooling in insurance?
• What is one of the warning signs of financial addiction?
• What is one benefit of pooling resources with local credit union chapters?
• What should one do after a death regarding estate planning?
• When determining insurance needs, which risk should be insured first?
• What type of environment should be created for financial counseling meetings?
• Which characteristics are typical of a hard approach in counseling?
• What is a recommended step for managing accounts when dealing with addiction issues?
• Which visualization technique is often associated with the right brain?
• How can individuals get involved in the education of financial counseling?
• What should an individual do if they encounter problems with their insurance policy?
• What is the primary focus of remedial counseling?
• What role does a Power of Attorney (POA) play for an individual who is incapacitated?
• What might indicate elder abuse through financial documents?
• What is the purpose of scaling in the counseling process?
• What is a potential sign of elder abuse related to new financial activities?
• What does liquidity refer to in the context of investments?
• What materials should counselors have on hand to assist victims of identity theft?
• Members should inform creditors that they are which of the following?
• What does Limited (Special) POA grant authority for?
• Which qualities are associated with left brain thinking?
• What can help free up money for debt repayment?
• What skill helps build rapport between a counselor and a member?
• What is the purpose of conducting a yearly credit report review?
• What does it mean to counteroffer a creditor's proposal?
• Which factor can contribute positively to someone having a high credit score?
• What should be done with credit cards solely in the deceased's name?
• What does the "unknown" category of the Johari Window represent?
• What is a potential disadvantage of credit cards?
• What approach emphasizes the importance of saving despite often ending up with nothing left to save?
• What should a financial counter avoid during meetings?
• How might employee financial education affect company culture?
• When counseling partners of individuals with addiction, what should be emphasized?
• What is the structure of a home equity loan?
• What percentage of a credit score is typically based on payment history?
• What strategy should be avoided according to the guideline of not risking more than one can afford to lose?
• What does the term 'return' indicate in investment terminology?
• Which practice can help rebuild credit after bankruptcy?
• What is the first step to take immediately after a death occurs?
• Which of the following best describes the final step of the counseling process?
• What is a recommended action for members before foreclosure proceedings begin?
• When should counselors discuss outstanding medical debts with members?
• What is a key aspect of the financial counseling process?
• In counseling, what does 'blending' refer to?
• Which of the following best describes left brained qualities?
• Which of the following is a step in creating an action plan for financial problems?
• Which two laws must Credit Unions comply with to ensure their policies are up to date?
• Which of the following is a consideration when setting up a new cash flow plan for a member?
• What is a common disadvantage of leasing a vehicle?
• What is the responsibility of the executor as designated in a will?
• Which of the following is NOT a benefit provided by the SCRA?
• What do financial counselors need to help members assess?
• Which of the following is a safety protocol for financial counseling meetings?
• What is crucial when removing or replacing financial accounts after elder abuse?
• What is a disadvantage of refinancing student loans?
• What are dividends in relation to investments?
• What causes repossession to occur?
• Which of the following is NOT a consideration when refinancing student loans?
• Which of the following can lead to income generation for credit unions?
• What is a benefit of saving money?
• How long do major credit bureaus wait before medical debt appears on a credit report?
• What is the primary purpose of Force Field Analysis?
• Why is inventory management crucial for cash flow?
• What is a key advantage of buying a car instead of leasing?
• Which of the following describes an advantage of having a credit card?
• Which financial action must be taken with caution to avoid tax penalties?
• What is the main focus when using exceptions in counseling?
• What is a common reason seniors may have student loan debt?
• What is a common advantage of owning a home?
• What describes the function of the unconscious mind in terms of right brain activity?
• What does preventive counseling primarily aim to accomplish?
• Which of the following is a result of financial counseling for credit unions?
• Which aspect of debt management focuses on monitoring progress?
• What are hard inquiries associated with?
• Which of the following is NOT one of the 5 C's of Credit?
• Financial counselors assist clients primarily with which of the following areas?
• What benefit does refinancing student loans typically provide?
• What is a common goal of state leagues when pooling resources?
• What is a significant action that can negatively impact a credit score?
• What does a cash flow analysis reveal about income and expenses?
• Which question is NOT part of evaluating risk?
• According to best practices, how should one respond to unsolicited increases in credit limits?
• What is the primary method used in the judicial process for repossession?
• How can credit unions provide support to members facing foreclosure?
• According to best practices, what should be maintained when recognizing a member's needs for financial counseling?
• What is the main difference between a General POA and a Durable POA?
• How do state leagues often promote financial literacy?
• What is NOT typically a task to be completed after a death?
• What is the Rule of 72 used for?
• What step follows data collection in the counseling process?
• Which type of debt is considered non-dischargeable in bankruptcy?
• What situation may require an individual to file a new W-4?
• What is the primary function of a Durable POA for Health Care?
• What is a key factor in increasing benefit enrollment among employees?
• What is a key outcome of the counseling process?
• What is the primary benefit of saving now for retirement?
• What can happen if medical debt is sent to collections?
• What is an effective strategy to manage risk?
• What does a credit report primarily reflect?
• Which of the following is an option available to help seniors with education debt?
• What is a benefit of becoming an authorized user on a credit account?
• Evaluating the odds of suffering a loss is an important part of what process?
• What is a critical first step for repairing credit after bankruptcy?
• During which step do counselors help members create actionable financial plans?
• What type of activities should financial counselors measure?
• What is the maximum authority granted by a Durable POA?
• What is a common characteristic of higher insurance costs associated with leasing a car?
• Who is most likely to have a higher need for life insurance?
• What is one of the necessary documents to manage affairs after a death?
• Which action can help members recover from elder abuse?
• What is essential when changing spending habits as a family?
• To whom should members report fraud alerts after identity theft?
• Which of the following is an important aspect of ensuring uninterrupted attention during financial counseling?
• How does financial literacy impact absenteeism among employees?
• When is it appropriate to check on the transfer of property titled under "transfer on death"?
• What does accounts receivable refer to?
• What is an advisable action for members after bankruptcy regarding credit?
• Which of the following is NOT a method for addressing medical debt?
• In investment terms, what does risk denote?
• How is a Home Equity Line of Credit (HELOC) different from a traditional loan?
• In the case of a Durable POA, when does it become ineffective?
• What should individuals do if they have unpaid debts?
• Why are advocacy efforts important for financial counselors?
• What is a potential risk of comparing debt without considering all expenses?
• What should be closed immediately after identity theft?
• How does a credit score influence financial decisions?
• What is a requirement for traditional IRAs regarding contributions?
• Indemnification in the context of insurance refers to what?
• When must required withdrawals start for traditional IRAs?
• Which statement accurately describes financial counselors?
• What does the rate of return refer to?
• What is an essential action for financial counselors when supporting partners of addicts?
• Why is it important to protect business interests after a death?
• Which factor should NOT be considered when selecting insurance?
• What strategy is recommended for managing large debts effectively?
• What is the maximum interest rate capped by the MLA for military members?
• What is the first step in the change process?
• Which aspect is essential for creating an even playing field in financial counseling meetings?
• What is an essential feature of financial counseling meeting spaces?
• What is one of the roles of financial counselors when working with members?
• What is a significant trait of the soft approach in counseling?
• In a Cost Benefit Analysis, what is typically evaluated?
• What is typically settled first during probate for debts owed by a deceased individual?
• Who is generally required to pay the medical bills of a deceased if the estate cannot cover them?
• What should you create as part of your personal inventory after a death?
• What is one way to avoid problems with credit cards?
• What does leasing a car generally involve?
• Which factor contributes 30% to an individual's credit score?
• What is one advantage of leasing a car?
• Who should you contact to help determine how many death certificates you need?
• What is a key downside of renting?
• What does the term 'pacing' refer to in counselor-client interactions?
• Springing POA is particularly useful in which situation?
• What is recommended when creating a plan to change spending habits?
• What is the impact of a soft credit inquiry?
• What impact does financial education have on employee loyalty?
• Which of the following is NOT a source of financial risk?
• When helping members in financial difficulty, what should be prioritized first?
• How does divorce directly impact credit scores?
• What does determining if a member is judgment-proof involve?
• What is the first step in developing a spending plan?
• Why is it important to manage accounts payable effectively?
• Which is NOT a step that needs to be taken after bankruptcy?
• Which of the following is NOT a way to pool resources with credit union organizations?
• What is one benefit of employee education in financial counseling?
• What is one potential method of reducing risk?
• What should financial counselors recommend to partners of addicts for additional support?
• What is meant by volatility in investments?
• Which of the following best describes insurance interest?
• When managing seasonal income, one must develop strategies for what purpose?
• Which skill involves evaluating how clients' behaviors affect their financial situations?
• Which of the following is NOT listed on a credit report?
• In the Johari Window model, what is the "blind" area?
• What is an indicator of poor credit management?
• What does the SCRA primarily cap interest rates at for military members?
• Which filing status allows for significant tax deductions and is available to individuals who pay more than half of household costs?
• What behavior is most unhelpful for members during bankruptcy?
• When does a Springing POA come into effect?
• What should individuals do regarding their credit reports post-divorce?
• How can members assess their financial position?
• Which financial document is NOT typically gathered after a death?
• What can happen if a borrower defaults on federal debt?
• What emotional state might indicate a member needs referral to financial counseling?
• Which of the following is a fundamental principle of retirement planning?
• What type of payments are businesses required to make to the government?
• Which list should include account numbers and beneficiaries after a death?
• Why is it important to set goals in the debt reduction process?
• Which is the first step in conducting productive conversations with family about goals?
• What does the term 'term' refer to regarding an investment?
• What is a recommended strategy for managing cyclical income fluctuations?
• Before purchasing a vehicle, what is a critical step to assess affordability?
• What aspect should be provided when referring a member to financial counseling?
• Which brain hemisphere is primarily associated with analytical and symbolic thinking?
• Which organization is dedicated to assisting disabled veterans?
• Which of the following is a necessary element before starting to invest?
• What is advised against when negotiating with creditors?
• Which element is NOT part of the motivation support elements?
• Which is a key task in the counseling process?
• What types of information are included in a credit report?
• Which counseling approach is characterized by humor and metaphors?
• What should be reviewed regarding insurance needs after a death?
• What does voluntary surrender refer to in the context of repossession?
• Which of the following is NOT a skill required of financial counselors?
• Which approach is taken when a counselor expresses understanding of a member's emotions?
• What could happen if employee benefit contributions are not made on time?
• In terms of decision-making tools, which step is essential for efficiency?
• What is a step credit unions can take to help reduce bankruptcy loss?
• What qualities characterize the right brain thinking?
• Which of the following is part of creating a spending plan?
• What is the first of the three components included in the Rule of Thirds?
• What is one impact of successful financial counseling on credit union membership?
• Which of the following statements is true regarding 401K and 403B accounts?
• What is the importance of the grace period in a credit card?
• What should a member do after analyzing their debt?
• What is a recommended practice for members to maximize benefits from employer retirement plans?
• Which action is NOT recommended for establishing credit?
• What is a common consequence of closing credit lines?
• What event can lead to default in addition to missed payments?
• Which scenario suggests that owning a house is more advantageous?
• Which of the following is a potential benefit of reduced stress from financial counseling?
• What might happen if a consumer frequently overdrafts their accounts?
• During bankruptcy, what should counselors help members understand about creditors?
• What does a debt ratio assess?
• What is one key indicator of potential elder abuse regarding financial behavior?
• What encourages the concept of saving money as a priority?
• How many on-time payments are typically required during a rehabilitation period for federal debt?
• What is net worth a measure of?
• What are financial counselors encouraged to track in their work?
• What should be included in a financial inventory list after someone passes away?
• Which of the following actions should be taken regarding accounts after someone's death?
• What does a Will specify regarding a person's assets?