Afc Exam Prep Study Guide

Jeff's minimum payment is $150 for his credit card. He has the following balances and interest rates on his card: Purchases $325 8% Cash Advance $2,000 22% Balance Transfer $800 $1.9% Jeff has some extra money this month so he sends in $200. Which balance does the $200 have to apply to? {Ans: Cash Advance}For families with children the bulk of their life insurance need relates to their {Ans: income-replacement.}Who has the responsibility for converting a stated need into an appropriate goal statement? {Ans: The counselor}At what point does a financial counselor need to tell a client what their fees are? {Ans: Before entering into a counseling relationship}Settlement options for life insurance proceeds include all of the following EXCEPT A) interest income. B) additional paid-up insurance. C) lump sum. D) income for a specific period. {Ans: B) additional paid-up insurance.}Your client wants to buy an apartment building. While she needs to talk to a lawyer to confirm, which type of business entity should she set up? {Ans: Limited Liability Company (LLC)}