Pre-test

Question 1

What are the potential negative consequences if a service member has excessive and/or unpaid debt?

Answer 1

Loss of Promotion
Denied overseas assignment
Loss of Security clearance
The answer is all of the above

Question 2

When thinking of a financially secure retirement, How can thrift savings plan play a part?

Answer 2

Allows service members to invest for the future in a tax advantaged account
May provide employee match
May allow tax-free distributions at retirement
The answer is all of the above

Question 3

What contribution level allows you to reduce your taxable income and create a retirement fund?

Answer 3

Traditional TSP

Question 4

The Blended Retirement System (BRS) has four components

Answer 4

Pension
TSP with matching contribution
Continuation pay
Lump sum option at retirement

Question 5

What is the purpose of spending plan?

Answer 5

Help you manage your money
Helps you plan to meet financial goals
Helps you prepare for emergencies
The answer is all of the above

Question 6

What are the first steps to personal financial management?

Answer 6

Setting goals
Planning
Making a budget

Question 7

The difference between pays and allowances is that pay is taxed and allowances are not?

Answer 7

True

Question 8

Which of the following are steps that should be taken before entering a sales contract?

Answer 8

Take it home before you sign it, read every word, and use your legal service

Question 9

Which of the following is not an action of a CFS when assisting a Service member who has received a Letter of intent?

Answer 9

Contact creditors for service member and set up a payment plan

Question 10

What law may allow service members to reduce interest rates for debt incurred prior to military service down to 6% and require a court hearing before conviction?

Answer 10

Servicemembers civil relief act.

Question 11

Annualcreditreport.com is a government mandated site that provides a free copy of your credit report every twelve months from each of the three nationwide credit reporting companies?

Answer 11

True

Question 12

Who is the beneficiary of a service member’s SGLCI and Thrift savings plan?

Answer 12

Whomever the service member has designated as beneficiary of this policy

Question 13

If a service members financial needs exceed your scope of knowledge you should refer them to the Personal Financial Manager (PFM) or Personal Financial Counselor (PSC)

Answer 13

True

Question 14

What is a warning sign of Identity theft?

Answer 14

Missing bills
Unauthorized accounts on credit reports
Unsolicited credit cards or bills

Question 15

Net monthly income is:

Answer 15

Gross pay minus income taxes and FICA/social security

What your spending plan (budget) should be based on.

Question 16

What are three ways to create a positive cash flow?

Answer 16

Decrease living expenses, increase income, decrease indebtedness.

Question 17

Good financial management states that your indebtedness should be what percentage of your net-income?

Answer 17

35%

Question 18

Which of the following is a premise of solution focused financial counseling?

Answer 18

It is short-term and maintains a task centered focus.

Question 19

Which key concept of the Blended Retirement System BRS is part of the Legacy High 3 retirement system?

Answer 19

Lump sum options at retirement
TSP matching contributions
2% multiplier

Question 20

What is a warning sign that indicates a service member may be experiencing financial difficulty?

Answer 20

Unable to pay bills
Foreclosures of evictions
Repossession

Question 21

Vesting refers the the time when employer contributions in your retirement account are yours to lump.

Answer 21

true

Question 22

When a service member enrolls their new spouse in Deers they are automatically enrolled in dental.

Answer 22

false

Question 23

What is not an action a service member should take prior to employment?

Answer 23

Get a general power of attorney

Question 24

What are common tasks that you, an CFS in your service, perform to assist Service Members with financial considerations?

Answer 24

Education and training, information and referral and counseling.

Question 25

What does a high interest rate do to the due to the actual price of any item brought on credit?

Answer 25

It makes the item cost more in total price

Question 26

The Survivor Benefit plan is a monthly annuity following death to the beneficiaries of?

Answer 26

A retiree who signs up to participate and pays a monthly premium from their retired pa
And active duty SM who dies in the line of duty

Question 27

Which of the following does not impact your credit?

Answer 27

Checking your own credit score

Question 28

Under the BRS, the Gov will contribute 1% f your base pay to your tsp account and match up to an additional ____ percent based on your TSP contribution after you are vested in TSP?

Answer 28

4% for a total of 5%

Question 29

if you have $100 and there is an interest of 2% per year how much would you have in 5 years?

Answer 29

More than $102

Question 30

Imagine that the interest rate on your savings account was 1% and inflation was 2% per year. How much would you be able to buy in this account.

Answer 30

Less than today.