Smart Money Certification Smc-e: Sample Employee Quiz

25 Questions | Total Attempts: 35

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Smart Money Certification Smc-e: Sample Employee Quiz

The following questions represent just a small subset of over 200 questions covered in the SMC-E Certification Exam for employees. Employees today are dealing with financial challenges that affect every generation, from Millennials to Boomers…whether for themselves, young adult children, or aging parents. Using over 60 on-demand videos and the SMC Resource Guide, the goals of this Certification program are to educate, motivate, and empower employees to make informed financial decisions, while also solving many of the costly problems for employers.


Questions and Answers
  • 1. 
    Your credit score is not important if you only pay cash for purchases.
    • A. 

      True

    • B. 

      False

  • 2. 
    A study by the GAO (Government Accountability Office) found that a forced transfer (one in which there is no directive by the employee) of retirement funds protects an employee's future retirement savings.
    • A. 

      True

    • B. 

      False

  • 3. 
    An Income Deduction Order (IDO) and garnishments can reduce wages by as much as 50% in some states!
    • A. 

      True

    • B. 

      False

  • 4. 
    The IRS's new Fresh Start program allows taxpayers an opportunity to immediately remove tax liens from their credit reports.
    • A. 

      True

    • B. 

      False

  • 5. 
    The CDC's Yellow Book provides cautions and helpful tips for anyone considering medical tourism as a way to reduce the high cost of medical and dental procedures.
    • A. 

      True

    • B. 

      False

  • 6. 
    A small good-faith payment can "resurrect" a zombie debt (an old debt whose statute of limitations is about to expire).
    • A. 

      True

    • B. 

      False

  • 7. 
    Equity investments provide a fixed rate of growth and an estimated date for the return of principal.
    • A. 

      True

    • B. 

      False

  • 8. 
    A debt that is time-barred means bill collectors only have 90 days left to collect it.
    • A. 

      True

    • B. 

      False

  • 9. 
    Primary care doctors must now accept patients as long as they are covered by one of the ACA healthcare insurance plans.
    • A. 

      True

    • B. 

      False

  • 10. 
    Aging parents could pay a penalty every month for the rest of their lives if they fail to enroll in Medicare Part B when eligible.
    • A. 

      True

    • B. 

      False

  • 11. 
    Some insurance carriers will charge substantially more — or even refuse to issue a policy — to homeowners with certain breeds of dogs.
    • A. 

      True

    • B. 

      False

  • 12. 
    Individuals can set aside up to $5,000 pre-tax dollars in their Health Savings Accounts (HSAs) to pay for healthcare costs.
    • A. 

      True

    • B. 

      False

  • 13. 
    With those over 65 owing more than $15 billion in student loan debt, Social Security checks can now be garnished for non-payment of private student loans.
    • A. 

      True

    • B. 

      False

  • 14. 
    It is critical to protect the rights and future guardianship of children in case of divorce or death of a de facto parent.
    • A. 

      True

    • B. 

      False

  • 15. 
    Big-box stores like Sam's or Costco are required by law to provide their standard prescription drug prices to everyone, whether the individual is a member or not.
    • A. 

      True

    • B. 

      False

  • 16. 
    A TOD in some states can be an easy way to transfer assets to beneficiaries without going through probate.
    • A. 

      True

    • B. 

      False

  • 17. 
    An ADV form can verify and give investors confidence that an advisor is registered with the SEC (Securities and Exchange Commission).
    • A. 

      True

    • B. 

      False

  • 18. 
    All Americans have a will that documents who receives their assets or cares for dependent children when they die.
    • A. 

      True

    • B. 

      False

  • 19. 
    For those with a significant amount of debt, the biggest benefit of working with a debt settlement firm is that the firm will prevent liens, lawsuits, and garnishments.
    • A. 

      True

    • B. 

      False

  • 20. 
    Mortgage insurance benefits increase over time as the value of the home increases.
    • A. 

      True

    • B. 

      False

  • 21. 
    Most taxpayers can receive a Saver's Credit (tax credit) for contributions made to their retirement plan at work.
    • A. 

      True

    • B. 

      False

  • 22. 
    An easy way to increase your credit score is to cut up old credit cards.
    • A. 

      True

    • B. 

      False

  • 23. 
    It's not important to purchase life insurance for a non-working parent of small children, as long as the primary wage earner is covered.
    • A. 

      True

    • B. 

      False

  • 24. 
    Employees capitalize on the benefits of dollar cost averaging when they invest in their retirement plan at work.
    • A. 

      True

    • B. 

      False

  • 25. 
    Married couples can increase their retirement income and protect their ability to remain in their home by listing both individuals on a reverse mortgage, as long as at least one of them is 62 or older.
    • A. 

      True

    • B. 

      False