10 exam-style questions with answers and explanations, straight from our 1,030-question bank. Tap an answer to check yourself. When you're ready, take the scored version in the free practice test.
These 10 free CPFFE questions are organized by exam domain, so you can see how each part of the Certified Personal and Family Finance Educator blueprint is tested. Reveal the answer and explanation under each question.
During a session, a 68-year-old participant realizes that a caller posing as bank security persuaded him to wire $8,000 to a 'protected account' 20 minutes ago. He initiated the transfer himself and has not given anyone his login credentials. What takes priority now?
Correct answer: C - Call his bank using a verified number and request a transfer recall.
Morgan is considering a midcareer certificate requiring $6,000 in tuition and $1,500 in additional travel and childcare. A nonrepayable tuition grant covers $2,000. Enrollment would also mean forgoing $8,000 in after-tax earnings. Ordinary household costs of $9,000 would occur whether or not Morgan enrolls. If the certificate increases after-tax earnings by $4,500 per year after completion, approximately how long is the simple payback period for the full incremental investment, ignoring discounting?
Correct answer: C - 3.0 years
A household's complete records show income exceeding spending over each of the last three months. Nevertheless, automatic bill payments repeatedly overdraw checking just before a midmonth paycheck. The household has no past-due debts, and several payees allow due-date changes without fees. Which intervention targets the problem shown by these records?
Correct answer: D - Align eligible bill due dates with paydays and track the balance between deposits.
'I paid the card in full. Why did my score fall?' After a month of larger purchases, Lena's base FICO score, calculated with the same model, drops from 754 to 719. Her accurate credit report shows a higher card balance, with no late payments or other changes. She has cash available to pay earlier and also holds an older, unused card with no annual fee. Which adjustment addresses the likely cause?
Correct answer: B - Reduce the balance before the issuer reports it, while keeping payments on time.
A credit-card statement includes a duplicate charge. The cardholder sends a proper written billing-error notice to the issuer's designated address within 60 days after the first statement showing the error was sent. Which payment instruction correctly states the cardholder's rights and obligations during the investigation?
Correct answer: C - Withhold disputed charges; continue required payments on the undisputed balance.
Evan's health plan has a $1,500 annual deductible, 20% coinsurance after the deductible, and a $4,000 in-network out-of-pocket maximum. He has already paid $1,000 toward the deductible; this is also his total counted out-of-pocket spending this year. A covered in-network procedure has an allowed amount of $16,000. There are no copayments or other charges. How much must Evan pay for this procedure?
Correct answer: A - $3,000
Two parents have young children. One earns the household's income; the other provides full-time unpaid childcare. They want enough death-benefit protection to replace either parent's financial contribution for the next 20 years and have a limited premium budget. Which proposal best matches that need?
Correct answer: A - Compare term coverage for both parents, including the cost of replacing unpaid care.
A bondholder receives the same fixed coupon payments as before, and the issuer's credit quality has not changed. Comparable new bonds now offer higher yields, while the existing bond's resale price has fallen. Which risk is illustrated most directly?
Correct answer: A - Interest-rate risk: comparable new bonds make the existing fixed coupon less attractive.
A course is intended to teach adults to choose affordable loans. Its final assessment asks learners to define lending terms. Scores are highly consistent on repeat testing, yet many high scorers cannot compare two loan offers. The strongest criticism of this assessment is that it:
Correct answer: D - Underrepresents the decision-making skill that the course is intended to teach.
Low-income adults in a financial-education program score higher on independently graded budgeting tasks after instruction than they did on equivalent tasks before instruction. At the three-month follow-up, their savings have not increased; several report fewer paid work hours. What do these findings support?
Correct answer: B - The task results support learning; unchanged savings may reflect limits on available resources.
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