EverFi Module 1 - Savings - Final Quiz
Answers
1. Key: * = correct answer
2. You are opening a savings account that earns compound
interest. Which compounding frequency will earn you the
MOST money?: A.) Compounding
1 time a year
B.) Compounding 4 times a year
C.) Compounding monthly
D.) Compounding daily*
3. 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
4. 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
, 5. 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
6. 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
7. 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
8. 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*
Answers
1. Key: * = correct answer
2. You are opening a savings account that earns compound
interest. Which compounding frequency will earn you the
MOST money?: A.) Compounding
1 time a year
B.) Compounding 4 times a year
C.) Compounding monthly
D.) Compounding daily*
3. 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
4. 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
, 5. 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
6. 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
7. 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
8. 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*
