EVERFI - SAVINGS QUIZ

Which of the following savings vehicles usually requires a high minimum balance? - Answer- Certificate of Deposit (CD) To earn as much interest as possible, you should open a savings account that earns _______ interest and has the ______ interest rate. - Answer- compound; lowest When it comes to saving money, what is a good rule of thumb? - Answer- Put aside money for savings each month 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? - Answer- Certificate of Deposit (CD) Which of the following is a type of savings vehicle? - Answer- Both A & B Jorge has $300 for work he performed. He expects to spend the money in the next few weeks to buy a new bike. Which type of account will be best for Jorge? - Answer- Checking Account Which of the following is generally true about savings vehicles? - Answer- People should evaluate different forms of savings vehicles based on their needs Which of the following accounts will give you the LEAST access to your money? Simple savings account Certificate of Deposit (CD) Checking account Cash - Answer- Certificate of Deposit (CD) Anthony is deciding between different savings accounts at his bank. He has four options, based on how frequently interest compounds. Which should he choose if he wants the best rate of return on his interest? - Answer- Daily Compounding You are opening a savings account that earns compound interest. Which compounding frequency will earn you the MOST money? - Answer- Compounding Daily The purpose of a budget is to: - Answer- Help you plan how you will spend the money you earn or receive Which of the following is considered a "want"? - Answer- Designer Sneakers What is the typical relationship between time and interest rate? - Answer- Longer time period usually equals higher interest rates