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

Put aside money for savings each month

What is the typical relationship between time and interest rate?

Longer time period usually equals higher interest rates.

Which of the following is generally true about savings vehicles?

Budget for your needs before your wants.

The purpose of a budget is to:

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

the amount owed for borrowing money

Which of the following is the most important consideration when planning your budget?

Budget for your needs before your wants.

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Everfi Financial Literacy - Savings

17 termsStudBud Administration341 plays

Personal Financial Literacy quiz from Everfi Teacher Resources

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Questions 17

Answers

1
Which of the following actions would enable him to earn MORE interest?
Leaving his money in the account for long period of time.
Both of these.
Selecting an account with a high interest rate.
None of these.
2
Which account typically has very high liquidity, low or no interest, and low minimum balance?
Money Market Account
Investment Retirement Account (IRA)
Checking Account
Certificate of Deposit (CD)
3
To earn as much interest as possible, earns _______interest and has the ______ interest rate.
simple; highest
compound; lowest
simple; lowest
compound; highest
4
When it comes to saving money, what is a good rule of thumb?
Choose the savings account with the lowest interest rate
Put aside money for savings each month
Put anything you can’t afford on your credit card
Keep most of your savings in your checking account
5
If someone expects to spend $ in the next few weeks which type of account will be best?
Checking Account
Certificate of Deposit (CD)
Savings Account
Money Market Account
6
Which of the following savings vehicles usually requires a high minimum balance?
All of these
Certificate of Deposit (CD)
Simple savings account
Checking account
7
Which of the following is considered a "want"?
Socks
Designer Sneakers
Shoes
A warm winter coat
8
An account that earns compound interest. Which compound frequency will earn you the MOST money?
Compounding 4 times a year
Compounding monthly
Compounding 1 time a year
Compounding daily
9
What is the typical relationship between time and interest rate?
Shorter time periods usually no effect on interest rates.
Longer time periods usually no effect on interest rates.
Longer time period usually equals higher interest rates.
Shorter time period usually equals higher interest rates.
10
Which of the following is generally true about savings vehicles?
Budget for expected events before unexpected expenses.
Budget for unexpected events in before expected expenses.
Budget for your needs before your wants.
Budget for fixed expenses before flexible expenses.
11
Based on how frequently interest compounds. Which one will get the best return on interest.
Semi-Annual Compounding
Monthly Compounding
Annual Compounding
Daily Compounding
12
To earn the most possible interest and will not need access to her money for a full year.
Certificate of Deposit (CD)
Savings Account
Checking Account
Money Market Account
13
Which of the following is a type of savings vehicle?
Money Market Account
CD
Both 1 and 2
Checking acccount
14
The purpose of a budget is to:
stop you from spending too much money.
tell you how much you owe the government in taxes
help you plan how you will spend the money you earn or receive.
increase the balance of your savings account
15
Interest is:
charge for convenience of taking money out of your account
a charge for lending money to a bank
amount added into your savings when opening a bank account
the amount owed for borrowing money
16
Which of the following is the most important consideration when planning your budget?
Budget for expected events before unexpected expenses.
Budget for unexpected events in before expected expenses.
Budget for your needs before your wants.
Budget for fixed expenses before flexible expenses.
17
Which of the following accounts will give you the LEAST access to your money?
Simple savings account
Checking account
Cash
Certificate of Deposit (CD)

Everfi Financial Literacy - Savings Flashcards | StudBud