Everfi Module: 1-9

Question 1

Interest is:

Answer 1

The amount owned for borrowing money.

Question 2

To earn as much interest as possible, you should open a savings account that earns ___ interest and has the ____ interest rate.

Answer 2

compound; highest

Question 3

John just opened a savings account and wants to maximize the amount of interest he earns. Which of the following actions would enable him to earn MORE interest?

Answer 3

selecting an account with high interest rate; leaving his money in the account for long period of time.

Question 4

You are opening a savings account that earns compound interest. Which compounding frequency will earn you the MOST money?

Answer 4

Compounding daily.

Question 5

Which of the following is a type of savings vehicle?

Answer 5

Certificate of Deposit

Question 6

Which of the following is generally true about savings vehicles?

Answer 6

People should evaluate different forms of savings vehicles based on their needs.

Question 7

Which of the following savings vehicles usually requires a high minimum balance?

Answer 7

Certificate of Deposit (CD)

Question 8

Which of the following accounts will give you the LEAST access to your money?

Answer 8

Certificate of Deposit (CD)

Question 9

Purpose of a budget is to:

Answer 9

Help plan how you will spend the money you earn or receive.

Question 10

When it comes to saving money, what is a good rule of thumb?

Answer 10

Put aside money for savings each month.

Question 11

The three parts of the Federal Reserve System are the Reserve Banks, the Federal Open Market Committee (FOMC), and the:

Answer 11

Board of Governors

Question 12

Which of the following is NOT one of the responsibilities of the Federal Reserve?

Answer 12

Establishing the federal budget

Question 13

Which of the following is a unique feature of credit unions?

Answer 13

Credit Unions are typically owned and run by their members; Credit unions limit membership to entertain people or groups

Question 14

Which type of account is typically the MOST liquid?

Answer 14

Checking account

Question 15

Savings accounts usually offer ______ interest rates than checking accounts. It is ______ to access your money in a savings account than in a checking account.

Answer 15

Higher; harder

Question 16

What part of a check is the least important?

Answer 16

Memo line

Question 17

Which of the following represent typical account fees?

Answer 17

Arm fees; service fee; minimum balance fee

Question 18

What’s the best strategy for avoiding ATM fees?

Answer 18

Only use ATMs in your banks network

Question 19

What’s the purpose of balancing or monitoring your checking account?

Answer 19

To help you calculate how much money you have in your account

Question 20

The best way to ensure the accuracy and safety of your accounts is to?

Answer 20

Monitor your online accounts regularly

Question 21

Which of the following payment types require you to pay upfront?

Answer 21

Money orders; cashiers check; pre paid cash

Question 22

Which of the following statements comparing debit cards to credit cards is true?

Answer 22

Debit cards allow you to draw funds directly from your checking account

Question 23

Which payment method typically charges the highest interest rates?

Answer 23

Credit cards

Question 24

What payment type can help you stick to a budget?

Answer 24

Debit cards

Question 25

If you are planning to carry a large balance on your credit card, which of the following credit card features should you look for?

Answer 25

Low APR

Question 26

The annual percentage rate on a credit card determines_____

Answer 26

None of the above

Question 27

Making a minimum payment:

Answer 27

Means you are paying a small portion of your total credit card debt

Question 28

Which of the following can increase your credit cards APR?

Answer 28

Missing a credit card payment

Question 29

What is a credit card balance?

Answer 29

The amount of money you still owe to the credit card company

Question 30

Which of the following is NOT a common credit card fee?

Answer 30

Minimum payment fee

Question 31

Which of the following statements about credit scores is true?

Answer 31

Credit scores reflect how likely individuals are to repay their debts: credit scores range from the low 300s to the 800s: each person has three credit scores.

Question 32

Having a good credit score is important because:

Answer 32

It can impact your ability to be approved for bank loans

Question 33

All of the following make up the big three credit report agencies except:

Answer 33

Federal reserve

Question 34

Which of the following actions can negatively impact your credit score?

Answer 34

You forgot to pay the cable bill

Question 35

Which of the following actions has no impact on your credit score?

Answer 35

You inquire about a credit card charge

Question 36

Which of the following most influences your credit score?

Answer 36

Payment history

Question 37

Which of the following actions would improve your credit score?

Answer 37

Paying off your credit card bill

Question 38

What action is least important to maintaining a healthy credit score?

Answer 38

Know your exact credit score

Question 39

How many free credit reports are you legally entitled to each year?

Answer 39

3

Question 40

Having a low credit score can make it more difficult to:

Answer 40

Obtain a car loan; open a new credit card; secure an apartment lease

Question 41

The return of investment ( ROI)from education is typically the highest four:

Answer 41

Someone with a four-year bachelor degree

Question 42

Your sister is starting ninth-grade next year and is thinking about going to college. What steps would you first recommend she takes?

Answer 42

Looking for school clubs and organizations she's interested in

Question 43

Which of the following loans will typically offer the lowest interest rate?

Answer 43

Federal student loans

Question 44

When referring to student loans, what is a grace period?

Answer 44

You. After graduating or leaving school before you must begin paying back student loans

Question 45

Which loan type requires you to make loan payments while you're attending school?

Answer 45

Neither a nor B

Question 46

Which of the following statements about federal state loans is true

Answer 46

The interest rate on your loan will be fixed overtime

Question 47

Using the FASFA form you can apply for:

Answer 47

Federal student loans; the federal work study program

Question 48

The federal application for student aid form:

Answer 48

Can be submitted online or by mail

Question 49

After you send in your FASFA form what will you recieve back?

Answer 49

Your student aid teport

Question 50

You were looking for ways to pay for your higher education cost, which of the following options will require you to pay back any money receive?

Answer 50

Federal student loans