EverFi Modules Questions | 100% Correct
Answers | Verified | Latest 2024 Version
What is the typical relationship between time and interest rate?
a) Longer time period usually equal higher interest rates
b) Shorter time period usually equal higher interest rates
c) Longer time periods usually have no affect on interest rates
d) Shorter time periods usually have no affect on interest rates - ✔✔a) Longer time period usually equal
higher interest rates
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 - ✔✔b) the amount
owed for borrowing money
Which of the following is the MOST important consideration when planning your budget?
a) Budget for expected events before unexpected expenses
b) Budget for your needs before your wants
c) Budget for fixed expenses before flexible expenses
d) Budget for unexpected events before expected expenses - ✔✔b) Budget for your needs before your
wants
Which of the following is generally true about savings vehicles?
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 - ✔✔b) People should evaluate different forms of savings
,Which of the following savings vehicles usually requires a high minimum balance?
a) Simple savings account
b) Certificate of Deposit (CD)
c) Checking account
d) All of the above - ✔✔
Which of the following conditions will maximize the amount of interest you earn?
a) A high interest rate & long time period
b) A high interest rate & short time period
c) A low interest rate & long time period
d) A low interest rate & short time period - ✔✔a) A high interest rate & long time period
"Compounding frequency" refers to:
a) How often your interest is calculated and added back into your account
b) How easily you can add money into your account
c) What type of interest your account earns
d) What interest rate you can expect from your account - ✔✔a) How often your interest is calculated and
added back into your account
When would you need to use the Rule of 72?
a) To figure out the interest rate for your savings account
b) To find out how long it will take your money to double
c) To estimate how much money you'll have in your account in 72 years
d) To calculate a reasonable monthly savings goal - ✔✔b) To find out how long it will take your money to
double
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 - ✔✔a) help you plan how you will spend the
money you earn or receive.
Which type of account typically has very high liquidity, low or no interest, and low minimum balance?
a) Money Market Account
b) Cartificate of Deposit (CD)
c) Checking Account
d) Investment Retirement Account (IRA) - ✔✔c) Checking Account
When it comes to saving money, what is a good rule of thumb?
a) Keep most of your savings in your checking account
b) Put aside money for savings each month
c) Choose the savings account with the lowest interest rate
d) Put anything you can't afford on your credit card - ✔✔b) Put aside money for savings each month
Which of the following is considered a "want"?
a) Designer Sneakers
b) A warm winter coat
c) Socks
d) Shoes - ✔✔a) Designer Sneakers
Your friend is overspending and in need of a budget. What type of expense should they reduce next
month?
a) Purchasing medicine for their asthma.
b) Going to the movies with friends.
c) Buy fewer school books.
d) Transportation to get to and from school. - ✔✔b) Going to the movies with friends.
Answers | Verified | Latest 2024 Version
What is the typical relationship between time and interest rate?
a) Longer time period usually equal higher interest rates
b) Shorter time period usually equal higher interest rates
c) Longer time periods usually have no affect on interest rates
d) Shorter time periods usually have no affect on interest rates - ✔✔a) Longer time period usually equal
higher interest rates
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 - ✔✔b) the amount
owed for borrowing money
Which of the following is the MOST important consideration when planning your budget?
a) Budget for expected events before unexpected expenses
b) Budget for your needs before your wants
c) Budget for fixed expenses before flexible expenses
d) Budget for unexpected events before expected expenses - ✔✔b) Budget for your needs before your
wants
Which of the following is generally true about savings vehicles?
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 - ✔✔b) People should evaluate different forms of savings
,Which of the following savings vehicles usually requires a high minimum balance?
a) Simple savings account
b) Certificate of Deposit (CD)
c) Checking account
d) All of the above - ✔✔
Which of the following conditions will maximize the amount of interest you earn?
a) A high interest rate & long time period
b) A high interest rate & short time period
c) A low interest rate & long time period
d) A low interest rate & short time period - ✔✔a) A high interest rate & long time period
"Compounding frequency" refers to:
a) How often your interest is calculated and added back into your account
b) How easily you can add money into your account
c) What type of interest your account earns
d) What interest rate you can expect from your account - ✔✔a) How often your interest is calculated and
added back into your account
When would you need to use the Rule of 72?
a) To figure out the interest rate for your savings account
b) To find out how long it will take your money to double
c) To estimate how much money you'll have in your account in 72 years
d) To calculate a reasonable monthly savings goal - ✔✔b) To find out how long it will take your money to
double
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 - ✔✔a) help you plan how you will spend the
money you earn or receive.
Which type of account typically has very high liquidity, low or no interest, and low minimum balance?
a) Money Market Account
b) Cartificate of Deposit (CD)
c) Checking Account
d) Investment Retirement Account (IRA) - ✔✔c) Checking Account
When it comes to saving money, what is a good rule of thumb?
a) Keep most of your savings in your checking account
b) Put aside money for savings each month
c) Choose the savings account with the lowest interest rate
d) Put anything you can't afford on your credit card - ✔✔b) Put aside money for savings each month
Which of the following is considered a "want"?
a) Designer Sneakers
b) A warm winter coat
c) Socks
d) Shoes - ✔✔a) Designer Sneakers
Your friend is overspending and in need of a budget. What type of expense should they reduce next
month?
a) Purchasing medicine for their asthma.
b) Going to the movies with friends.
c) Buy fewer school books.
d) Transportation to get to and from school. - ✔✔b) Going to the movies with friends.
