Everfi Module: 1-9 Flashcards
Interest is:
The amount owned for borrowing money.
To earn as much interest as possible, you should open a savings account that earns ___ interest and has the ____ interest rate.
compound; highest
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?
selecting an account with high interest rate; leaving his money in the account for long period of time.
You are opening a savings account that earns compound interest. Which compounding frequency will earn you the MOST money?
Compounding daily.
Which of the following is a type of savings vehicle?
Certificate of Deposit
Which of the following is generally true about savings vehicles?
People should evaluate different forms of savings vehicles based on their needs.
Which of the following savings vehicles usually requires a high minimum balance?
Certificate of Deposit (CD)
Which of the following accounts will give you the LEAST access to your money?
Certificate of Deposit (CD)
Purpose of a budget is to:
Help plan how you will spend the money you earn or receive.
When it comes to saving money, what is a good rule of thumb?
Put aside money for savings each month.
The three parts of the Federal Reserve System are the Reserve Banks, the Federal Open Market Committee (FOMC), and the:
Board of Governors
Which of the following is NOT one of the responsibilities of the Federal Reserve?
Establishing the federal budget
Which of the following is a unique feature of credit unions?
Credit Unions are typically owned and run by their members; Credit unions limit membership to entertain people or groups
Which type of account is typically the MOST liquid?
Checking account
Savings accounts usually offer ______ interest rates than checking accounts. It is ______ to access your money in a savings account than in a checking account.
Higher; harder
What part of a check is the least important?
Memo line
Which of the following represent typical account fees?
Arm fees; service fee; minimum balance fee
What’s the best strategy for avoiding ATM fees?
Only use ATMs in your banks network
What’s the purpose of balancing or monitoring your checking account?
To help you calculate how much money you have in your account
The best way to ensure the accuracy and safety of your accounts is to?
Monitor your online accounts regularly
Which of the following payment types require you to pay upfront?
Money orders; cashiers check; pre paid cash
Which of the following statements comparing debit cards to credit cards is true?
Debit cards allow you to draw funds directly from your checking account
Which payment method typically charges the highest interest rates?
Credit cards
What payment type can help you stick to a budget?
Debit cards
If you are planning to carry a large balance on your credit card, which of the following credit card features should you look for?
Low APR
The annual percentage rate on a credit card determines_____
None of the above
Making a minimum payment:
Means you are paying a small portion of your total credit card debt
Which of the following can increase your credit cards APR?
Missing a credit card payment
What is a credit card balance?
The amount of money you still owe to the credit card company
Which of the following is NOT a common credit card fee?
Minimum payment fee
Which of the following statements about credit scores is true?
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.
Having a good credit score is important because:
It can impact your ability to be approved for bank loans
All of the following make up the big three credit report agencies except:
Federal reserve
Which of the following actions can negatively impact your credit score?
You forgot to pay the cable bill
Which of the following actions has no impact on your credit score?
You inquire about a credit card charge
Which of the following most influences your credit score?
Payment history
Which of the following actions would improve your credit score?
Paying off your credit card bill
What action is least important to maintaining a healthy credit score?
Know your exact credit score
How many free credit reports are you legally entitled to each year?
3
Having a low credit score can make it more difficult to:
Obtain a car loan; open a new credit card; secure an apartment lease
The return of investment ( ROI)from education is typically the highest four:
Someone with a four-year bachelor degree
Your sister is starting ninth-grade next year and is thinking about going to college. What steps would you first recommend she takes?
Looking for school clubs and organizations she’s interested in
Which of the following loans will typically offer the lowest interest rate?
Federal student loans
When referring to student loans, what is a grace period?
You. After graduating or leaving school before you must begin paying back student loans
Which loan type requires you to make loan payments while you’re attending school?
Neither a nor B
Which of the following statements about federal state loans is true
The interest rate on your loan will be fixed overtime
Using the FASFA form you can apply for:
Federal student loans; the federal work study program
The federal application for student aid form:
Can be submitted online or by mail
After you send in your FASFA form what will you recieve back?
Your student aid teport
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?
Federal student loans
