EverFi Module 1 - Savings - Final Quiz Answers 2023

EverFi Module 1 - Savings - Final Quiz Answers 2023Key * = correct answer 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* 00:12 01:11 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 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 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 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 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 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* B.) Monthly Compounding C.) Daily Compounding D.) Semi-Annual Compounding Which of the following is a type of savings vehicle? A.) Certificate of Deposit B.) Money Market Account C.) Checking Account D.) Both A & B* 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 To earn as much interest as possible, you should open a savings account that earns _______ interest and has the ______ interest rate. A.) compound; lowest B.) compound; highest* C.) simple; lowest D.) simple; highest What is the typical relationship between time and interest rate? A.) Shorter time period usually equals higher interest rates. B.) Longer time periods usually have no affect on interest rates. C.) Longer time period usually equals higher interest rates.* D.) Shorter time periods usually have no affect on interest rates.