Download EverFi Modules Questions | 100% Correct Answers | Verified | Latest 2024 Version and more Exams Financial Management in PDF only on Docsity!
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 - โโa) 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 - โโb) 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 - โโb) 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 - โโb) 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 - โโ 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 - โโa) 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 - โโa) 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 - โโb) 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.
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) Checking Account b) Certificate of Deposit (CD) c) Money Market Account d) Savings Account - โโb) Certificate of Deposit (CD) The numbers on the bottom of a typical check represent all of the following EXCEPT? a) Check Number b) Account Number c) Routing Number d) Social Security Number - โโ Which type of financial institution typically has membership requirements? a) Commercial Bank b) Federal Reserve Bank c) Credit Union d) Online Commercial Bank - โโ Which of the following is a primary responsibility of the Federal Reserve Bank? a) Collect taxes b) Establish monetary policy c) Print money d) Pass monetary laws - โโb) Establish monetary policy Savings accounts usually offer _________ interest rates than checking accounts. It is _________ to access your money in a savings account than in a checking account. a) lower; harder
b) lower; easier c) higher; easier d) higher; harder - โโd) higher; harder What part of a check is the LEAST important? a) Routing number b) Signature line c) The check number d) Memo line - โโd) Memo line The primary goal of the Federal Reserve system is to: a) maintain a safe and stable banking system b) keep banks up-to-date on the latest economic research c) provide budget recommendations to the Treasury Department d) ensure interest rates for savings accounts stay high - โโa) maintain a safe and stable banking system Which of the following statements about FDIC-insured accounts is correct? a) FDIC insures deposits up to $250,000 per person per bank b) All credit unions and retail banks provide FDIC-insured accounts c) Both A & B d) Neither A nor B - โโa) FDIC insures deposits up to $250,000 per person per bank If you need to set up direct deposit, which information from your check would you likely need? a) Check number b) Memo line c) Numerical amount d) Routing number - โโd) Routing number
d) Checking Account - โโ With a traditional savings account, you could be charged a fee if: a) You close the account b) You deposit too much money at once c) You open an account online d) You withdraw money too often - โโd) You withdraw money too often Which of the following is not a type of bank? a) Retail Bank b) Credit Union c) Payday Lender d) Online Bank - โโc) Payday Lender What's the best strategy for avoiding ATM fees? a) Only use ATMs close to your house b) Only use ATMs to withdraw cash c) Only use ATMs in your bank's network d) Only use ATMs you have used before - โโc) Only use ATMs in your bank's network Which type of account will typically have the highest interest rate? a) Checking Account b) Certificate of Deposit (CD) c) Savings Account d) Money Market Account - โโ Which of the following is NOT one of the responsibilities of the Federal Reserve? a) Supervising the Reserve banks
b) Maintaining a stable banking system c) Setting the nation's monetary policy d) Establishing the federal budget - โโd) Establishing the federal budget What's the purpose of balancing or monitoring your checking account? a) To find out which checks you have bounced b) To help you calculate how much money you have in your account c) To keep an estimation of how many checks you write d) To stop identity theft from occurring - โโb) To help you calculate how much money you have in your account Which of the following fees would likely be the highest? a) Overdraft fee b) ATM fee c) Monthly service fee d) Account transfer fee - โโa) Overdraft fee Which of the following statements comparing debit cards to credit cards is TRUE? a) Debit cards allow you to draw funds directly from your checking account. b) Debit cards typically offer greater fraud protection than credit cards. c) Debit cards never require a signature to finalize a purchase like credit cards. d) Debit cards charge higher interest rates on purchases than credit cards. - โโ Making a minimum payment: a) Means you are paying a small portion of your total credit card debt b) Is the same thing as making a late credit card payment c) Will have a negative effect on your credit score d) Will cause your credit card to be cancelled - โโ
c) Statements II & III d) Statements I, II & III - โโc) Statements II & III All of the following are fees typically charged by credit card companies EXCEPT: a) Late payment fee b) Balance transfer fee c) Annual membership fee d) Reload fee - โโd) Reload fee Which of the following statements about minimum payments is INCORRECT? a) Minimum payments are typically only 2-4% of your total debt b) If you send in the minimum payment, you will be charged a late fee. c) You will still pay interest on your balance if you submit the minimum payment. d) Paying the minimum means you are only paying off a portion of your total debt. - โโb) If you send in the minimum payment, you will be charged a late fee. What is the amount of money you still owe to their credit card company called? a)Credit Card Fee b) Credit Card Limit c) Credit Card Interest d) Credit Card Balance - โโd) Credit Card Balance Making a credit card minimum payment: a) Means you are paying a small portion of your total credit card debt b) Is the same thing as making a late credit card payment c) Will have a negative effect on your credit score d) Will cause your credit card to be cancelled - โโa) Means you are paying a small portion of your total credit card debt
Which of the following tells you how much your credit card interest will be if you only pay the minimum balance each month? a)Late Fee b) Annual Membership Fee c) Annual Percentage Rate d) Balance Transfer Fee - โโc) Annual Percentage Rate Which payment type can help you stick to a budget? a) Credit cards b) Debit cards c) Payday loans d) Cash advances - โโb) Debit cards Which of the following is true? a) Checks are the most widely accepted form of payment b) Checks and Debit Cards both withdraw money directly from a bank account. c) Debit Cards often have a higher interest rate than Credit Cards. d) Debit cards offer the highest level of fraud protection. - โโb) Checks and Debit Cards both withdraw money directly from a bank account. Which of the following is NOT true of credit cards? a) They are the best payment type to use when trying to stick to a budget. b) You can be charged a fee if you are late making a monthly payment. c) Some offer rewards, like cash back or airline miles. d) They offer the highest level of fraud protection. - โโa) They are the best payment type to use when trying to stick to a budget. Which of the following can increase your credit card's APR? a) Paying the minimum b) Missing a credit card payment
Which behaviors might lead someone to have a low credit score? a) Always paying the full balance of a credit card each month. b) Having a long credit history. c) Missing a car payment. d) Having a debit card. - โโ Which of the following is true of a person with a high credit score? a) They are more likely to pay bills on time. b) They are less likely to pay off debts. c) They probably have a high balance on multiple credit cards. d) Both B and C are correct. - โโ In which of the following situations is having a good credit score important? a) Buying a car b) Applying for a loan at a bank c) Renting an apartment d) All of the above - โโ Which of the following statements are TRUE about credit scores? a) Credit scores reflect how likely individuals are to repay their debts. b) Only the credit bureaus know exactly how credit scores are calculated. c) Both A & B d) Neither A nor B - โโc) Both A & B What financial behaviors will typically lead to a low credit score? a) Maxed out credit cards b) Fully paid balances c) On-time payments
d) Long credit history - โโa) Maxed out credit cards Which of the following factors will have the greatest impact on your credit score? I. Length of Credit History II. Payment History III. Amounts Owed IV. Types of Credit Used a) I & II b) II & III c) I & III d) II & IV - โโb) II & III Which is LEAST important to maintaining a healthy credit score? a) Making on-time payments b) Checking your credit report annually c) Knowing your exact credit score d) Letting the credit bureaus know about any inaccurate information on your credit report - โโc) Knowing your exact credit score All of the following make up the big three credit reporting agencies EXCEPT: a) Equifax b) TransUnion c) Experian d) Federal Reserve - โโd) Federal Reserve Which is true of someone with a low credit score? I. They probably make on time payments. II. They may not be able to rent the apartment they want. III. They are more likely to miss a payment than someone with a high credit score a) I b) II c) III d) II and III - โโd) II and III
d) Always paying the full balance of a credit card each month. - โโc) Missing a car payment. If your credit reports show different scores, what should you do? a)Nothing, the credit bureaus will recognize the mistake and fix it for you. b) Get in touch with credit bureaus to see if they have different or inaccurate information on your credit history. c) Research online to see how you can get into the system and fix it yourself. d) Visit your local bank and have them fix it for you. - โโb) Get in touch with credit bureaus to see if they have different or inaccurate information on your credit history. Which of the following statements about credit scores is TRUE? a) Credit scores reflect how likely individuals are to repay their debts. b) Credit scores range from the low 300's to the mid 800's. c) Each person has three credit scores. d) All of the above. - โโd) All of the above. The Federal Application for Student Aid (FAFSA) form: a) Is only used to apply for federal unsubsidized loans. b) Is only used to apply for federal subsidized loans. c) Can only be submitted by mail. d) Is the free application for federal student aid. - โโ Which of the following statements about the FAFSA process are TRUE? a) You must be a U.S. citizen to submit the FAFSA form. b) You must use the FAFSA to apply for the federal work-study program. c) You cannot fill out the FAFSA form without your parent/guardian. d) You should only fill out the FAFSA form if you can demonstrate financial need. - โโ Which education level has the highest return on investment (ROI)?
a) High School Diploma b) Bachelor's Degree (4 years of college) c) Senior in High School d) ROI is equal for all of the above. - โโ When looking to finance higher education, what is the best order to look for funding sources? a) Grants/Scholarships - Federal Student Loans - Private Loans b) Private Loans - Grants/Scholarships - Federal Student Loans c) Federal Student Loans - Grant/Scholarships - Private Loans d) Grants/Scholarships - Private Loans - Federal Student Loans - โโ When making college visits, you may be able to... a) receive reimbursement for your college visit costs b) schedule a tour of the college campus c) attend a college class to see what it's like d) Both B & C e) All of the above - โโe) All of the above Which of the following loans will typically offer the lowest interest rate? a) Payday loan b) Federal Student Loan c) Private Loan *d) Both A & B - โโ Which answer best describes an unsubsidized federal loan? a) The federal government will only cover the interest accumulated on the loan if you graduate and earn a degree. *b) You are responsible for paying all the interest that accumulates on your loan. c) You are only responsible for the cost of the loan.
b) Speaking with your school's college advisor. c) Joining an after school club or sports team. *d) All of the above. - โโ When referring to student loans, what is a grace period? a) The time period between graduating college and starting your first job when you don't have to pay back student loans *b) The period after graduating or leaving school before you must begin paying back student loans c) The amount of time you have to pay back your entire student loan amount d) None of the above - โโ The return on investment (ROI) from education is typically the highest for: a) A high school graduate b) A college applicant c) Someone with a 2-year (Associate) degree *d) Someone with a 4-year (Bachelor's) degree - โโ You are looking for ways to pay for your higher education costs. Which of the following options will require you to pay back any money you receive? a) Grants b) 529 plans *c) Federal student loans d) Scholarships - โโ
