Delinquency
KNOWLEDGE EXPECTED OF: QAFP® Professionals
Highest Knowledge Level: Understanding
Knowledge Levels and Associated Verbs
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Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
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Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
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Application
Ability to put information to use / to use knowledge for relevant, practical purposes
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Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
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|---|---|---|---|---|---|---|---|---|---|
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Define
To state exactly the meaning of
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Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
|
Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
|
Determine
To ascertain / to come to a decision, such as by investigation or reasoning
|
Compare
To note the similarities and differences between two or more things
|
Estimate
To determine an approximate value for
|
Calculate
To find the value using mathematics
|
Convert
To change from one form or purpose to another
|
Evaluate
To reach a conclusion or make a through careful study
|
Interpret
To give the meaning of / to construe or understand / to translate orally
|
Hold cursor over or click on each term to read its definition.
- Define delinquency.
- Explain the impact of delinquency on:
- Net worth
- Credit score
- Credit bureau
- Interest rate
- Future borrowings
- Explain the factors to consider when deciding the priority of debts to repay, such as:
- Repercussions of failing to pay the debt
- Interest rate
- Fees / costs
- Explain the lender’s right of offset.1
- Explain the role of debt collection agencies.
- Identify that the federal government has rights for delinquent obligations owing to it, such as:
- Garnishment of income without judgement
- Seizure of assets without judgement
- Encumbrance of assets without judgement
- Identify that provincial/territorial governments have varying rights for delinquent obligations owing to them.
REFERENCES
1 https://www.canada.ca/en/financial-consumer-agency/services/banking/right-of-offset.html
KNOWLEDGE EXPECTED OF: CFP® Professionals
Highest Knowledge Level: Understanding
Knowledge Levels and Associated Verbs
|
Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
|
Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
|
Application
Ability to put information to use / to use knowledge for relevant, practical purposes
|
Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
|
||||||
|---|---|---|---|---|---|---|---|---|---|
|
Define
To state exactly the meaning of
|
Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
|
Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
|
Determine
To ascertain / to come to a decision, such as by investigation or reasoning
|
Compare
To note the similarities and differences between two or more things
|
Estimate
To determine an approximate value for
|
Calculate
To find the value using mathematics
|
Convert
To change from one form or purpose to another
|
Evaluate
To reach a conclusion or make a through careful study
|
Interpret
To give the meaning of / to construe or understand / to translate orally
|
Hold cursor over or click on each term to read its definition.
- Define delinquency.
- Explain the impact of delinquency on:
- Net worth
- Credit score
- Credit bureau
- Interest rate
- Future borrowings
- Explain the factors to consider when deciding the priority of debts to repay, such as:
- Repercussions of failing to pay the debt
- Interest rate
- Fees / costs
- Explain the lender’s right of offset.1
- Explain the role of debt collection agencies.
- Identify that the federal government has rights for delinquent obligations owing to it, such as:
- Garnishment of income without judgement
- Seizure of assets without judgement
- Encumbrance of assets without judgement
- Identify that provincial/territorial governments have varying rights for delinquent obligations owing to them.
REFERENCES
1 https://www.canada.ca/en/financial-consumer-agency/services/banking/right-of-offset.html