EverFi Questions and Answers Already Passed

EverFi Questions and Answers Already Passed QUESTION 1 Which of the following conditions will maximize the amount of interest you earn? A high interest rate and long time period A high interest rate and short time period A low interest rate and long time period A low interest rate and short time period Answer: A QUESTION 2 "Compounding frequency" refers to: How often your interest rate is calculated and added back into your account How easily you can add money into your account What type of interest your account earns What interest rate you can expect from your account Answer: A QUESTION 3 When would you need to use the Rule of 72? To figure out the interest rate for your savings account To find out how long it will take your money to double To estimate how much money you'll have in your account in 72 years To calculate a reasonable monthly savings goal Answer: B QUESTION 1 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 a high interest rate. Leaving his money in the account for long period of time. Transferring money into his checking account each month. Both A & B Answer: D QUESTION 2 To earn as much interest as possible, you should open a savings account that earns _______ interest and has the ______ interest rate. Compound; Lowest Compound; Highest Simple; Lowest Simple; Highest Answer: B QUESTION 3 The purpose of a budget is to: Help you plan how you will spend the money you earn or receive. Stop you from spending too much money. Increase the balance of your savings account Tell you how much you owe the government in taxes Answer: A QUESTION 4 Which of the following is the most important consideration when planning your budget? Budget for unexpected events in before expected expenses. Budget for fixed expenses before flexible expenses. Budget for expected events before unexpected expenses. Budget for your needs before your wants. Answer: D QUESTION 5 Anthony is deciding between different savings accounts at his bank. He has four options, based on how frequently interest compounds. Which should he choose if he wants the best rate of return on his interest? Semi-Annual Compounding Daily Compounding Annual Compounding Monthly Compounding Answer: B QUESTION 6 When it comes to saving money, what is a good rule of thumb? Keep most of your savings in your checking account Put aside money for savings each month Choose the savings account with the lowest interest rate Put anything you can't afford on your credit card Answer: B QUESTION 7 Your friend is overspending and in need of a budget. What type of expense should they reduce next month? Purchasing medicine for their asthma. Buy fewer school books. Going to the movies with friends. Transportation to get to and from school. Answer: C QUESTION 8 You are opening a savings account that earns compound interest. Which compounding frequency will earn you the MOST money? Compounding 1 time a year Compounding 4 times a year Compounding monthly Compounding daily Answer: D QUESTION 9 Which type of account typically has very high liquidity, low or no interest, and low minimum balance? Money Market Account Checking Account Certificate of Deposit (CD) Investment Retirement Account (IRA) Answer: B QUESTION 10 Which of the following is considered a "want"? Socks Designer Sneakers A warm winter coat Shoes Answer: B QUESTION 1 The primary goal of the Federal Reserve system is to: Maintain a safe and stable banking system Keep banks up-to-date on the latest economic research Provide budget recommendations to the Treasury Department Ensure interest rates for savings accounts stay high Answer: A QUESTION 2 Which of the following statements about FDIC-insured accounts is correct? FDIC insures deposits up to $250,000 per person per bank All credit unions and retail banks provide FDIC-insured accounts Both A & B Neither A nor B Answer: A QUESTION 3 If you need to set up direct deposit, which information from your check would you likely need? Check number Memo line Numerical amount Routing number Answer: D QUESTION 1 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 certain people or groups. Credit unions offer a wide variety of banking services. Both A & B Answer: D