EverFi Module 1 - Savings - Final Quiz Answers
1. Key: * = correct answer
- You are opening a savings account that earns compound
interest. Which compounding frequency will earn you the
MOST money?: A.) Compounding
- time a year
B.) Compounding 4 times a year C.) Compounding monthly D.) Compounding daily*
- Which of the following accounts will give you the LEAST
access to your money?: A.) Simple savings account
B.) Certificate of Deposit (CD)* C.) Checking account D.) Cash
- Tamara has $500 she is looking to save for a class trip. She
wants to earn the most possible interest and will not need access to her money for a full year. Which type of savings
account will be best for Tamara?: A.) Savings Account
B.) Certificate of Deposit (CD)* C.) Money Market Account D.) Checking Account
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- Interest is:: A.) a charge for lending money to a bank
B.) the amount owed for borrowing money* C.) the amount added into your savings when opening a bank account D.) a charge for the convenience of accessing money stored in your bank account
- The purpose of a budget is to:: A.) help you plan how you will
spend the money you earn or receive.* B.) stop you from spending too much money.C.) increase the balance of your savings account D.) tell you how much you owe the government in taxes
- Which of the following is generally true about savings
vehicles?: A.) Sav- ings vehicles are only useful for long-term
investments.B.) People should evaluate different forms of savings vehicles based on their needs.* C.) Savings vehicles are never insured. D.) All of the above
- Joy is taking out a car loan which she will pay back with
interest. Which option will require her to pay the lowest
amount in interest?: A.) Annual Compounding*
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