FREE FICEP Finance Questions and Answers
What is an insurable interest?
Insurable interest is the financial stake or monetary interest that the policyholder has in the property being insured.
It means that the policyholder would suffer a financial loss if the insured property is damaged or lost.
According to the 2013 consumer Literacy survey, what impact did the Great Recession have on American's confidence in their money management skills?
This indicates a significant portion of respondents were not confident in their ability to manage their finances effectively, likely influenced by the economic challenges experienced during the recession.
Who is eligible to participate in the federal government's National Flood Insurance Program?
This is the correct statement. The National Flood Insurance Program (NFIP) is available to homeowners, renters, and business owners in communities that participate in the program and have agreed to adopt and enforce floodplain management regulations.
These communities are typically located in areas susceptible to flooding.
In addition to salable skills, what qualities must every self-employed worker have to be successful?
Successful self-employed individuals need more than just technical skills; they must also possess the temperament and discipline to manage the financial aspects of their business.
This includes budgeting, tracking expenses, invoicing, managing cash flow, and planning for taxes. Financial management is essential for the long-term sustainability and profitability of a self-employed venture.
What is the definition of dividend?
A dividend is a distribution of a portion of a company's earnings to its shareholders. Typically, dividends are paid out in cash, but they can also be issued as additional shares of stock.
This is a reward to investors for their investment in the company's equity and is usually decided by the board of directors.
What belief do people who commit fraud often take advantage of?
This is the correct statement. People who commit fraud often take advantage of individuals who believe in offers or opportunities that seem exceptionally beneficial or unlikely.
This belief can make individuals more susceptible to scams, as they may not scrutinize the details carefully if they think they are getting an exceptionally good deal.
Why are government fees and surcharges sometimes described as a form of tax?
Like taxes, government fees and surcharges generate revenue for the government.
They are imposed on various activities, services, or products and contribute to the government's income, which is then used to fund public services and programs.
Which tactic will best help tellers stop a pigeon drop scam or a credit union examiner scam currently being committed?
Stalling the transaction is a prudent tactic in situations where tellers suspect fraudulent activity, such as pigeon drop scams or credit union examiner scams. By delaying the transaction, tellers can buy time to verify the legitimacy of the transaction, consult with supervisors or security personnel, and potentially prevent the scam from being successfully executed.
This approach allows them to gather more information, assess the situation, and take appropriate action to protect both the credit union and its members.
Which statement correctly describes the average American's retirement savings practice?
This statement accurately reflects the reality for many Americans.
Numerous studies and surveys indicate that a significant portion of the population is not saving adequately for retirement, often due to insufficient income, lack of financial planning, or underestimating the amount needed for a comfortable retirement.
What are the three levels of the savings pyramid?
Short-term savings for predictable, recurring expenses.
Emergency funds to cover unexpected expenses and financial shocks.
Funds saved for long-term financial goals, such as retirement, education, or large investments.
Which the these three Cs can help members move from being spenders to savers?
Commitment refers to making a firm decision to save and sticking to it, even when faced with temptations to spend. Control involves actively managing one's finances and making deliberate choices about spending and saving. Confidence entails believing in one's ability to save and achieve financial goals.
Together, these three Cs can help individuals transition from being spenders to savers by instilling discipline, accountability, and a sense of empowerment over their financial lives.