Financial Literacy - Final Exam
questions & answers rated A+
Interest - ANS ✔✔The amount owed for borrowing money
To earn as much interest as possible, you should open a savings account that earns __ interest
and has the __ interest rate. - ANS ✔✔Compound, Highest
How do you earn more interest? - ANS ✔✔High interest rate and leave money in account for
long amount of time
You open a saving account that earns compound interest. Which way will you earn the MOST
money? - ANS ✔✔Compounding Daily
What is an example of a savings vehicle? - ANS ✔✔Certificate of Deposit and Money Market
Account
Which is true about saving vehicles? - ANS ✔✔People should evaluate different forms of saving
vehicles based on their needs.
Which savings vehicle requires a high minimum balance? - ANS ✔✔Certificate of Deposit
What account gives you the LEAST access to your money? - ANS ✔✔Certificate of Deposit
The purpose of a budget is to... - ANS ✔✔Help plan how you will spend the money you earn /
receive
, When it comes to saving money, a good rule of thumb is .. - ANS ✔✔Put aside money for
savings each month
Three parts of the Federal Reserve System are the Reserve Banks, the Federal Open Market
Committee and the .. - ANS ✔✔Board of Governors
What is NOT a responsibility of the Federal Reserve? - ANS ✔✔Establishing a federal budget
Credit unions... - ANS ✔✔1. Typically owned and run by members
2. Limit membership to certain people or groups
What type of account is the MOST liquid? - ANS ✔✔Checking Account
Savings accounts usually offer __ interest rate than checking accounts. It is __ to access your
money in a savings account than in a checking account. - ANS ✔✔Higher, harder
Which part of the check is the least important? - ANS ✔✔Memo line
Typical account fees consist of.. - ANS ✔✔ATM fee, service Fee, Minimum balance fee
Best strategy for avoiding ATM fee? - ANS ✔✔Use ATM's in banks network
What is the purpose of balancing and monitoring you checking account? - ANS ✔✔Help
calculate how much money you have in your account
Best way to ensure the accuracy and safety of your account is to.. - ANS ✔✔Monitor your online
accounts regularly.
questions & answers rated A+
Interest - ANS ✔✔The amount owed for borrowing money
To earn as much interest as possible, you should open a savings account that earns __ interest
and has the __ interest rate. - ANS ✔✔Compound, Highest
How do you earn more interest? - ANS ✔✔High interest rate and leave money in account for
long amount of time
You open a saving account that earns compound interest. Which way will you earn the MOST
money? - ANS ✔✔Compounding Daily
What is an example of a savings vehicle? - ANS ✔✔Certificate of Deposit and Money Market
Account
Which is true about saving vehicles? - ANS ✔✔People should evaluate different forms of saving
vehicles based on their needs.
Which savings vehicle requires a high minimum balance? - ANS ✔✔Certificate of Deposit
What account gives you the LEAST access to your money? - ANS ✔✔Certificate of Deposit
The purpose of a budget is to... - ANS ✔✔Help plan how you will spend the money you earn /
receive
, When it comes to saving money, a good rule of thumb is .. - ANS ✔✔Put aside money for
savings each month
Three parts of the Federal Reserve System are the Reserve Banks, the Federal Open Market
Committee and the .. - ANS ✔✔Board of Governors
What is NOT a responsibility of the Federal Reserve? - ANS ✔✔Establishing a federal budget
Credit unions... - ANS ✔✔1. Typically owned and run by members
2. Limit membership to certain people or groups
What type of account is the MOST liquid? - ANS ✔✔Checking Account
Savings accounts usually offer __ interest rate than checking accounts. It is __ to access your
money in a savings account than in a checking account. - ANS ✔✔Higher, harder
Which part of the check is the least important? - ANS ✔✔Memo line
Typical account fees consist of.. - ANS ✔✔ATM fee, service Fee, Minimum balance fee
Best strategy for avoiding ATM fee? - ANS ✔✔Use ATM's in banks network
What is the purpose of balancing and monitoring you checking account? - ANS ✔✔Help
calculate how much money you have in your account
Best way to ensure the accuracy and safety of your account is to.. - ANS ✔✔Monitor your online
accounts regularly.
