CBS Financial Counseling & Risk Assessment

Question 1

What is the primary goal of financial counseling?

Accepted Answer

To provide guidance on budgeting and debt management.

Answer

To encourage individuals to take on more debt.

Answer

To eliminate all financial responsibilities.

Answer

To replace financial advisors in investment decisions.

Question 2

Which factor is most important in assessing financial risk?

Accepted Answer

Debt-to-income ratio.

Answer

The number of bank accounts owned.

Answer

The amount of cash carried daily.

Answer

The type of credit card used.

Question 3

Why is credit counseling important for individuals facing financial difficulties?

Accepted Answer

It helps individuals manage debt and improve financial literacy.

Answer

It guarantees debt forgiveness.

Answer

It allows individuals to avoid repaying loans.

Answer

It removes the need for personal budgeting.

Question 4

Which of the following is a common method for mitigating financial risk?

Accepted Answer

Diversification of assets.

Answer

Investing all funds in a single asset.

Answer

Avoiding savings and investments.

Answer

Taking on excessive loans without a repayment plan.

Question 5

What is the role of a financial counselor?

Accepted Answer

To educate and assist individuals in managing debt and finances.

Answer

To sell financial products only.

Answer

To approve loan applications.

Answer

To eliminate the need for financial planning.

Question 6

Which financial tool is most useful for risk assessment?

Accepted Answer

Credit score.

Answer

Social Security number.

Answer

Bank account balance only.

Answer

The number of credit cards owned.