EverFi Module 1 - Savings - Final Quiz Answers
Key - Answer * = correct answer
You are opening a savings account that earns compound interest. Which compounding frequency will earn you the MOST money? - Answer A.) Compounding 1 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? - Answer 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? - Answer A.) Savings Account B.) Certificate of Deposit (CD)* C.) Money Market Account D.) Checking Account
Interest is: - Answer 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: - Answer 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? - Answer A.) Savings 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
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