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

AFC holders must complete 30 continuing education hours every two years to maintain their credential.

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

Behavioral finance integrates psychological insights into financial decision-making, recognizing that cognitive biases and emotions significantly influence money management.

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

Research shows that facilitating intrinsic motivation through collaborative exploration is more effective than directive advice or education alone.

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

Selling products to counseling clients creates a dual relationship where the counselor's financial interest may conflict with providing objective advice.

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

In the contemplation stage, clients are aware of the problem and considering change but have not yet made a commitment.

AFC - Accredited Financial Counselor Practice Test

AFC - Accredited Financial Counselor Practice Test

AFC Financial Counseling Principles & Ethics 2