CFG CFG Elder Financial Exploitation & Consumer Protection 2

Question 1

Which of the following best describes 'undue influence' in the context of elder financial exploitation?

Accepted Answer

A situation where a person uses their position of power or trust to override an elder's free will to gain financial control

Answer

Undue influence occurs when someone exploits a position of trust, authority, or dependency to manipulate an older adult into financial decisions that benefit the influencer rather than the elder.

Question 2

What is 'diminished financial capacity' and why is it important for a CFG to understand?

Accepted Answer

A decline in the ability to manage financial tasks due to cognitive impairment, increasing vulnerability to exploitation

Answer

Diminished financial capacity refers to a decline—often linked to cognitive impairment—in the ability to manage money and financial decisions, which makes older adults more susceptible to financial exploitation and errors.

Question 3

Which document legally authorizes a trusted individual to manage an older adult's financial affairs if they become incapacitated?

Accepted Answer

A durable power of attorney (DPOA)

Answer

A durable power of attorney (DPOA) designates an agent to manage financial affairs and remains effective even if the principal becomes incapacitated.

Question 4

What is a 'reverse mortgage' and what consumer protection concern is most associated with it for older adults?

Accepted Answer

A loan allowing seniors to borrow against home equity with repayment deferred until the home is sold or vacated; concern is aggressive marketing and misunderstanding of terms

Answer

A Home Equity Conversion Mortgage (HECM) lets seniors access home equity without monthly payments; consumer concerns include high fees, aggressive sales tactics, risk of displacement if taxes/insurance lapse, and heirs losing the home.

Question 5

Which type of scam most commonly targets older adults through unsolicited phone calls or emails claiming they have won a prize or lottery?

Accepted Answer

Advance fee fraud (419 scam)

Answer

Advance fee fraud involves convincing victims they must pay fees or taxes upfront to claim a prize, inheritance, or lottery winnings that do not exist.

(CFG) Certified Financial Gerontologist Practice Test

(CFG) Certified Financial Gerontologist Practice Test

CFG CFG Elder Financial Exploitation & Consumer Protection 2