Certified Floodplain Manager (CFM) Practice Exam

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Unlock your potential as a Certified Floodplain Manager (CFM) with our expertly crafted practice test. Designed to simulate the real exam, our quiz offers a comprehensive review of floodplain management principles, preparing you for success.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

How is Actual Cash Value (ACV) determined according to FEMA?

Initial cost minus the depreciation percentage based on condition.
Replacement cost minus a percentage based on age and condition.
Cost based on the level of flood risk.
Price based on the cost of floodproofing measures.

The correct answer is: Replacement cost minus a percentage based on age and condition.

ACV is determined by taking the replacement cost of a damaged property and subtracting a percentage based on its age and condition. This means that option B is the most accurate and comprehensive way that FEMA determines the Actual Cash Value of a property. Options A, C, and D do not fully consider the cost of replacement and may not accurately reflect the current value of the property. Option A only takes into account the initial cost and depreciation, while option C solely focuses on the level of flood risk. Option D only considers the cost of floodproofing measures, which may not accurately reflect the cost of replacing the property. Therefore, option B is considered the most accurate and thorough way to determine ACV by FEMA.