AFC Financial Counseling Principles & Ethics 2

Question 1

The AFCPE certification requires financial counselors to complete continuing education hours within what renewal cycle?

Accepted Answer

Every two years

Answer

Annually

Answer

Every three years

Answer

Every five years

Question 2

Which theoretical framework views financial behavior as influenced by cognitive biases and emotional responses rather than purely rational decision-making?

Accepted Answer

Behavioral finance

Answer

Classical economic theory

Answer

Modern portfolio theory

Answer

Rational choice theory

Question 3

According to financial counseling principles, what is the most effective way to help a client change their financial behavior?

Accepted Answer

Facilitate the client's own motivation for change through collaborative exploration

Answer

Provide detailed financial education

Answer

Use directive advice telling the client exactly what to do

Answer

Show examples of successful outcomes from other clients

Question 4

What is the primary ethical concern with a financial counselor also selling insurance products to their counseling clients?

Accepted Answer

It creates a dual relationship with inherent conflict of interest

Answer

It requires additional licensing

Answer

It exceeds the scope of financial counseling

Answer

It violates privacy regulations

Question 5

The Transtheoretical Model of Change identifies which stage as the one where a client acknowledges the problem but has not yet committed to action?

Accepted Answer

Contemplation

Answer

Precontemplation

Answer

Preparation

Answer

Action

Question 6

Which principle requires financial counselors to treat all client information as private unless the client provides explicit consent for disclosure?

Accepted Answer

Confidentiality

Answer

Duty of care

Answer

Fiduciary duty

Answer

Due diligence