Scenario: you will not need to take money out for a year. To earn the most possible interest

open a Certificate of Deposit (CD)

What is the typical relationship between time and interest rate?

Longer time period usually equals higher interest rates.

If you are spending too much, what type of expense should you reduce next month?

Going to the movie with friends

The purpose of a budget is to

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

Which of the following is generally true about savings vehicles (accounts)?

People should evaluate forms of saving vehicles based on their needs

the amount owed for borrowing money

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

Put aside money for savings each month

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Everfi Financial Literacy - Module 1 Savings

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Personal Financial Literacy quiz from Everfi Teacher Resources

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Questions 20

Answers

1
Scenario: you will not need to take money out for a year. To earn the most possible interest
Open aChecking Account
open a Certificate of Deposit (CD)
open a Money Market Account
Open a Savings Account
2
Which of the following accounts will give you the LEAST access to your money?
Certificate of Deposit (CD)
Cash
Checking account
Simple savings account
3
Based on how frequently interest compounds. Which one will get the best return on interest.
Monthly Compounding
Annual Compounding
Daily Compounding
Semi-Annual Compounding
4
What is the typical relationship between time and interest rate?
Longer time periods usually no effect on interest rates.
Shorter time periods usually no effect on interest rates.
Shorter time period usually equals higher interest rates.
Longer time period usually equals higher interest rates.
5
The savings account that earns the most interest,earns _______interest and has the ______ interest rate.
compound; highest
simple; highest
compound; lowest
simple; lowest
6
Spending money on a new bike in the next few weeks. You should put it in this account?
Money Market Account
CD (Certificate of Deposit)
Savings Account
Checking Account
7
If you are spending too much, what type of expense should you reduce next month?
Buying medicine for your asthma
Buy fewer school books
Going to the movie with friends
Transportation to school or work
8
The purpose of a budget is to
stop you from spending too much money.
help you plan how you will spend the money you earn.
increase the balance of your savings account.
tell you how much you owe the government in taxes.
9
With a car loan, you pay back interest. Which option will require you pay the lowest interest?
Monthly Compounding
Annual Compounding
Semi-Annual Compounding
Daily Compounding
10
Which of the following is generally true about savings vehicles (accounts)?
Savings vehicles are never insured
People should evaluate forms of saving vehicles based on their needs
All of the above
Saving vehicles are only useful for long-term investments.
11
Which of the following is considered a need?
Fruit
Food
Gatorade
Pizza
12
Which of the following is considered a want?
Shoes
Designer Sneakers
Socks
Warm winter coat
13
An account that earns compound interest. Which compound frequency will earn you the MOST money?
Compounding monthly
Compounding 4 times a year
Compounding 1 time a year
Compounding daily
14
BEST ANSWER: Which of the following actions would enable someone to earn MORE interest?
None of these.
Selecting an account with a high interest rate.
Leaving his money in the account for long period of time.
Both of these.
15
Interest is:
a charge for lending money to a bank
amount added into your savings when opening a bank account
the amount owed for borrowing money
charge for convenience of taking money out of your account
16
When it comes to saving money, what is a good rule of thumb?
Put aside money for savings each month
Choose the savings account with the lowest interest rate
Keep most of your savings in your checking account
Put anything you can’t afford on your credit card
17
Which account typically has very high liquidity, low or no interest, and low minimum balance?
Checking Account
Certificate of Deposit (CD)
Money Market Account
Investment Retirement Account (IRA)
18
Which of the following savings vehicles usually requires a high minimum balance?
Checking account
Simple savings account
Certificate of Deposit (CD)
All of these
19
BEST ANSWER: Which of the following is a type of savings vehicle (account)?
CD
CD and Money Market account
Checking acccount
Money Market Account
20
If someone expects to spend $ in the next few weeks which type of account will be best?
Certificate of Deposit (CD)
Money Market Account
Savings Account
Checking Account

Everfi Financial Literacy - Module 1 Savings Flashcards | StudBud