Cwmc Module 11: Employment Competency Test
This quiz is part of LFEInstitute's CWMC (Certified Workplace Money Coaching) course. It willtest yourproficiency in the Employment Module (Module 11) of theprogram. The questions are allmultiple choice, and are designed to be a review of this Module. LetLFE knowwhen you've successfully completed this test and are ready to begin thenext Module.
Correct answers required for passing grade: 13/15
- 1.
Which of the following would you recommend for information regarding employment issues? (check all that apply)
- A.
Http://blackdog.net/index.html
- B.
Http://www.dol.gov/ebsa/consumer_info_health.html
- C.
Http://www.ehow.com/how_2097902_be-valued-employee.html
- D.
Http://www.wunderground.com/
- E.
Http://www.alllotto.com/
Correct Answer(s)
B. Http://www.dol.gov/ebsa/consumer_info_health.html
C. Http://www.ehow.com/how_2097902_be-valued-employee.htmlExplanation
The correct answers for information regarding employment issues are http://www.dol.gov/ebsa/consumer_info_health.html and http://www.ehow.com/how_2097902_be-valued-employee.html. These websites provide information and resources related to employment, including consumer information on health benefits and tips on how to be a valued employee.Rate this question:
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- 2.
Presenteeism is a term used to describe:
- A.
How many days a year an employee is present on the job
- B.
Lost productivity due to employee worries over finances
- C.
The specific hours an employee spends calculating vacation time
- D.
EAP utilization
- E.
The high cost of absenteeism
Correct Answer
B. Lost productivity due to employee worries over financesExplanation
Presenteeism is a term used to describe lost productivity due to employee worries over finances. This refers to the situation where employees are physically present at work but are not fully engaged or productive because they are preoccupied with financial concerns. These worries can include personal financial issues, such as debt, bills, or financial instability, which can negatively impact their focus, concentration, and overall performance at work. This can result in decreased productivity and effectiveness, ultimately affecting the organization's overall output and success.Rate this question:
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- 3.
To an employer, FSA stands for:
- A.
Financial Savings Association
- B.
Federal Student Aid
- C.
Flex Spending Account
- D.
Farm Service Agency
- E.
None of the above
Correct Answer
C. Flex Spending AccountExplanation
An employer would typically understand FSA to refer to a Flex Spending Account. A Flex Spending Account is a benefit offered by some employers that allows employees to set aside a portion of their pre-tax salary to pay for eligible medical expenses or dependent care expenses. This account helps employees save money on taxes by reducing their taxable income. It is a common benefit provided by employers to help employees manage their healthcare and dependent care expenses more effectively.Rate this question:
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- 4.
How does Money Coaching complement Retirement Plan Provider services? (check all that apply)
- A.
Answers questions on basic strategies for investing
- B.
Recommends specific investment options within the Plan
- C.
Shows employees where to find the money
- D.
Points out the bad investments to avoid
- E.
None of the above
Correct Answer(s)
A. Answers questions on basic strategies for investing
C. Shows employees where to find the moneyExplanation
Money Coaching complements Retirement Plan Provider services by answering questions on basic strategies for investing and showing employees where to find the money. This means that Money Coaching provides guidance and support in understanding investment strategies and helps individuals identify sources of funds that can be used for retirement planning. However, it does not recommend specific investment options within the Plan or point out bad investments to avoid.Rate this question:
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- 5.
Based on the question asked, a Money Coach response could include:
- A.
Pros and cons of specific strategies
- B.
Questions to ask an applicable advisor and the reasons those questions are important
- C.
Financial traps to avoid
- D.
How to save $200 when making that decision
- E.
Any of the above, whichever is applicable
Correct Answer
E. Any of the above, whichever is applicableExplanation
The correct answer is "Any of the above, whichever is applicable." This answer suggests that a Money Coach response could include any of the mentioned options: pros and cons of specific strategies, questions to ask an applicable advisor and the reasons those questions are important, financial traps to avoid, or how to save $200 when making a decision. The choice of which option to include in the response would depend on the specific situation and the relevance of each option.Rate this question:
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- 6.
How does Money Coaching differ from Employee Assistance Plan (EAP) services? (check all that apply)
- A.
EAP is crisis; Money Coaching is preventative
- B.
EAP typically deals with emotional/behavioral solutions to financial problems; Money Coaching deals with practical financial applications and decisions
- C.
EAP counselors help employees make smart investment decisions; Money Coaching gives no advice
- D.
EAP is an insurance provider; Money Coaching is a lending service
- E.
There are no differences in the two services.
Correct Answer(s)
A. EAP is crisis; Money Coaching is preventative
B. EAP typically deals with emotional/behavioral solutions to financial problems; Money Coaching deals with practical financial applications and decisionsExplanation
Money Coaching differs from Employee Assistance Plan (EAP) services in several ways. Firstly, EAP is designed to deal with crisis situations, while Money Coaching focuses on prevention. Secondly, EAP typically addresses emotional and behavioral solutions to financial problems, whereas Money Coaching focuses on practical financial applications and decisions. Additionally, EAP counselors may provide advice on smart investment decisions, whereas Money Coaching does not offer advice. Lastly, EAP is an insurance provider, whereas Money Coaching is a lending service. Therefore, there are clear differences between the two services.Rate this question:
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- 7.
Which financial acronym will an employer's HR staff generally NOT use on a day-to-day basis?
- A.
FSA
- B.
EAP
- C.
FEMA
- D.
FMLA
- E.
HSA
Correct Answer
C. FEMA -
- 8.
Which strategy are you likely to suggest in response to an employee concern that there may be a future "interruption in income"?
- A.
Investigate bankruptcy options
- B.
It’s a good time to review health insurance and drop it if it’s too expensive
- C.
Borrow as much money as possible if interest rates are low
- D.
Cash out retirement or pension plans to prepare
- E.
Establish an emergency fund for this life event
Correct Answer
E. Establish an emergency fund for this life eventExplanation
Establishing an emergency fund is the most suitable strategy in response to an employee concern about a potential interruption in income. By setting up an emergency fund, the employee can have a financial safety net to rely on during times of income loss or unexpected expenses. This fund can help cover basic living expenses and provide stability until a new source of income is secured. It is a proactive approach that promotes financial preparedness and can mitigate the negative impact of income interruption.Rate this question:
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- 9.
Which of the following is a TRUE statement regarding creditors calling employees at a workplace?
- A.
Debt collectors are governed by the Fair Debt Collection Practices Act
- B.
It’s illegal for a debt collection agency to ever call an employee at their job, so it doesn’t happen
- C.
Creditors are allowed to call an employee once a day to request payment on a bad debt
- D.
It’s illegal for Creditors to contact an employer to verify employment
- E.
None of the above
Correct Answer
A. Debt collectors are governed by the Fair Debt Collection Practices Act -
- 10.
Which of the following is the largest Human Resource association in the U.S.?
- A.
COBRA
- B.
SHRM
- C.
ERISA
- D.
FICA
- E.
None of the above is the largest.
Correct Answer
B. SHRMExplanation
SHRM is the largest Human Resource association in the U.S. This can be inferred from the fact that the other options listed, COBRA, ERISA, and FICA, are not HR associations but rather refer to specific laws or programs related to employee benefits and taxes. Therefore, the correct answer is SHRM.Rate this question:
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- 11.
Which of the following ERISA 404(c) facts related to an employer's fiduciary responsibility to provide unbiased education on the basics of investing are TRUE? (check all that apply)
- A.
This education can be provided by the Trustee of the company’s Plan or the 401(k) Provider
- B.
Employees can sue the company and all of the Plan Fiduciaries personally if this education isn’t provided
- C.
The employer will receive the “Safe Harbor” of the courts if they have mailed a prospectus to the employees’ homes
- D.
The new Pension Protection Act removes this fiduciary responsibility under 404(c)
- E.
ERISA 404(c) applies to any non-government employer with over 100 employees that have a self-directed retirement plan
Correct Answer(s)
B. Employees can sue the company and all of the Plan Fiduciaries personally if this education isn’t provided
E. ERISA 404(c) applies to any non-government employer with over 100 employees that have a self-directed retirement planExplanation
The first statement, "Employees can sue the company and all of the Plan Fiduciaries personally if this education isn't provided," is true because ERISA 404(c) holds employers and plan fiduciaries responsible for providing unbiased education on investing. If this education is not provided, employees have the right to sue.
The last statement, "ERISA 404(c) applies to any non-government employer with over 100 employees that have a self-directed retirement plan," is also true. ERISA 404(c) applies to non-government employers with self-directed retirement plans and a minimum of 100 employees. It outlines the employer's fiduciary responsibility in providing unbiased education on investing.Rate this question:
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- 12.
Which of the following present liability concerns for employers? (check all that apply)
- A.
ERISA
- B.
Growing workplace anger
- C.
SOX
- D.
Employee distractions on the job
Correct Answer(s)
A. ERISA
B. Growing workplace anger
C. SOX
D. Employee distractions on the jobExplanation
The correct answer is ERISA, Growing workplace anger, SOX, and Employee distractions on the job. ERISA (Employee Retirement Income Security Act) poses liability concerns for employers as it sets standards for retirement plans and imposes fiduciary responsibilities on employers. Growing workplace anger can lead to potential liability issues such as workplace violence or hostile work environment claims. SOX (Sarbanes-Oxley Act) imposes liability on employers for financial reporting and corporate governance. Employee distractions on the job can result in accidents or decreased productivity, which can lead to liability concerns for employers.Rate this question:
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- 13.
Money Coaching helps increase bottom-line profitability by accomplishing which of the following? (check all that apply)
- A.
Increasing productivity
- B.
Minimizing liabilities
- C.
Reducing Presenteeism costs
- D.
Lowering healthcare costs
- E.
Reducing ERISA-related lawsuits
Correct Answer(s)
A. Increasing productivity
B. Minimizing liabilities
C. Reducing Presenteeism costs
D. Lowering healthcare costs
E. Reducing ERISA-related lawsuitsExplanation
Money coaching can help increase bottom-line profitability by accomplishing several things. Firstly, it can increase productivity by helping individuals manage their finances better, reducing financial stress and distractions in the workplace. Secondly, it can minimize liabilities by providing guidance on financial decision-making and risk management. Additionally, money coaching can help reduce presenteeism costs by improving employees' overall well-being and reducing absenteeism. It can also lower healthcare costs by promoting healthier financial habits and reducing financial stress-related health issues. Lastly, money coaching can help reduce ERISA-related lawsuits by ensuring compliance with financial regulations and providing employees with the necessary knowledge and tools to make informed financial decisions.Rate this question:
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- 14.
A low FICO score can affect employees in which of the following ways? (check all that apply)
- A.
May not be hired for a job
- B.
Could prevent a promotion
- C.
Could cause the employer to look for another reason to fire the employee
- D.
None of the above; it’s illegal to discriminate on the basis of FICO scores so no employer would ever do it
Correct Answer(s)
A. May not be hired for a job
B. Could prevent a promotion
C. Could cause the employer to look for another reason to fire the employeeExplanation
A low FICO score can affect employees in multiple ways. Firstly, it may prevent them from being hired for a job as employers often consider credit scores as part of the hiring process. Secondly, it could hinder their chances of getting a promotion as employers may view a low credit score as a lack of financial responsibility. Lastly, a low FICO score could cause the employer to look for another reason to fire the employee, as it may be seen as a reflection of unreliability or financial instability.Rate this question:
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- 15.
An employee who is laid off will have questions about which of the following? (check all that apply)
- A.
Moving retirement plan funds
- B.
COBRA qualifications
- C.
Collecting unemployment
- D.
Garnishment issues
- E.
How to improve his/her FICO score
Correct Answer(s)
A. Moving retirement plan funds
B. COBRA qualifications
C. Collecting unemployment
D. Garnishment issues
E. How to improve his/her FICO scoreExplanation
When an employee is laid off, they may have questions about various aspects of their financial situation. Moving retirement plan funds would be a concern as they may need to decide what to do with their existing retirement savings. COBRA qualifications would be important to understand in order to continue healthcare coverage after losing their job. Collecting unemployment benefits would be a potential source of income for the employee while they search for a new job. Garnishment issues may arise if the employee has any outstanding debts or legal obligations. Lastly, the employee may be interested in improving their FICO score to enhance their financial standing in the future.Rate this question:
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Current Version
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Mar 19, 2023Quiz Edited by
ProProfs Editorial Team -
May 21, 2009Quiz Created by
Alice Whinnery
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