10 exam-style questions with answers and explanations, straight from our 1,030-question bank. Tap an answer to check yourself. When you're ready, take the scored version in the free practice test.
During a budgeting session, a member asks the financial counselor which specific stocks they should buy to grow their savings faster. The MOST appropriate response is to:
Correct answer: C - Explain general investing principles and refer the member to a licensed investment professional for specifics
A member says, 'I know my credit card debt is a problem, and I keep going back and forth about whether to finally deal with it.' This member is BEST described as being in which stage of change?
Correct answer: B - Contemplation
A counselor wants a hesitant member to open up about their spending during the first meeting. Which approach is MOST effective for gathering meaningful information?
Correct answer: A - Ask open-ended questions that invite the member to describe their situation
A new member arrives overwhelmed by debt and asks for a solution. Before recommending any strategy, the counselor's FIRST priority should be to:
Correct answer: D - Gather and review the member's full income, expenses, debts, and obligations
A member wants to pay off five debts in the way that costs them the least total interest over time. Which strategy should the counselor recommend?
Correct answer: C - The debt avalanche method, directing every extra dollar to the highest-interest debt first
A member has a gross monthly income of $5,000 and total monthly debt payments of $2,000, including their mortgage. What is the member's back-end debt-to-income (DTI) ratio?
Correct answer: B - 40%
Under the widely used 50/30/20 budgeting guideline, how should a member allocate their after-tax income?
Correct answer: A - 50% to needs, 30% to wants, and 20% to savings and debt repayment
Which single factor accounts for the largest share of a member's FICO credit score?
Correct answer: D - Payment history
A member has one credit card with a $2,000 balance and a $10,000 limit. Approximately what is their credit utilization, and how is that level generally viewed?
Correct answer: A - 20%, which is generally viewed as favorable
A member who recently filed Chapter 7 bankruptcy asks how long it will stay on their credit report. The counselor should explain that a Chapter 7 bankruptcy generally remains for:
Correct answer: C - 10 years
The full bank has 1,020 more CCUFC questions with explanations.
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