Free FICEP Finance Questions and Answers

Question 1

What is an insurable interest?

Accepted Answer

The policyholder's monetary interest in the insured property.

Answer

The premium owed on the policy.

Answer

The portion of a company's profits paid to stockholders.

Answer

The number of days after a purchase is made before interest is charged.

Question 2

Which statement correctly describes the average American's retirement savings practice?

Accepted Answer

Few are saving enough to fund a comfortable retirement.

Answer

The average american retires with a million dollars in savings

Answer

All americans have a solid retirement plan in place

Answer

Most americans have more than enough saved for retirement

Question 3

What belief do people who commit fraud often take advantage of?

Accepted Answer

Believing in something that is "too good to be true.

Answer

People should buy a term life policy, compare the cost to a whole life policy, and then invest the amount they saved.

Answer

Those who are ignored are likely to sabotage the plan.

Answer

An agent who is licensed by the state and has completed industry training.

Question 4

Who is eligible to participate in the federal government's National Flood Insurance Program?

Accepted Answer

Homeowners in participating communities that are susceptible to floods.

Answer

Business owners in landlocked regions.

Answer

Vacation home owners in mountainous regions.

Answer

Renters in non-flood-prone areas.

Question 5

What are the three levels of the savings pyramid?

Accepted Answer

Periodic savings, safety-net accounts, and retirement or other long-term savings.

Answer

Drivers with a high credit rating have a lower risk of accidents.

Answer

Credit unions charge the lowest interest rates and fees.

Answer

They help the member see the pitfalls of past financial practices and learn better habits.

Question 6

What is the definition of dividend?

Accepted Answer

The portion of a company's profits paid to stockholders.

Answer

The amount of money borrowed from a bank.

Answer

The value of a company's assets.

Answer

The price of a stock on a given day.

Question 7

Why are government fees and surcharges sometimes described as a form of tax?

Accepted Answer

Because they generate income for the government.

Answer

Because they are voluntary payments.

Answer

Because they are refunded to taxpayers.

Answer

Because they are tax-deductible.

Question 8

In addition to salable skills, what qualities must every self-employed worker have to be successful?

Accepted Answer

The temperament and discipline to manage the business financially.

Answer

Technical skills are sufficient for business success.

Answer

Outsourcing all tasks is the key to efficiency.

Answer

Having a large social media following is crucial.

Question 9

Which the these three Cs can help members move from being spenders to savers?

Accepted Answer

Commitment, Control, and Confidence

Answer

Values

Answer

Start saving as early as they can.

Answer

Family and Cultural Background, Societal Messages, and Generational Norms.

Question 10

Which tactic will best help tellers stop a pigeon drop scam or a credit union examiner scam currently being committed?

Accepted Answer

They can stall the transaction to give them more time to find a solution.

Answer

They can buy IDs and personal information on the street or Internet, or produce fake IDs themselves.

Answer

Few are saving enough to fund a comfortable retirement.

Answer

Their family's financial circumstances, their own career outlooks, and other options they have to finance their education.