EverFi Financial Final Exam Study Guide 2023

EverFi Financial Final Exam Study Guide 2023 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 a. compound; lowest 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 John just opened a savings account and wants to maximize the amount of interest he earns. Which of the following actions would enable him to earn MORE interest? a. Selecting an account with a high interest rate. b. Leaving his money in the account for long period of time. c. Transferring money into his checking account each month. d. Both A & B d. Both A & B 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 d. Compounding daily 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 a. Certificate of Deposit 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 vehicles based on their needs 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 b. Certificate of Deposit (CD) 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 b. Certificate of Deposit (CD) 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 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. Putting anything you can't afford on your credit card b. Put aside money for savings each month The three parts of the Federal Reserve System are the Reserve Banks, the Federal Open Market Committee (FOMC), and the: a. Board of Governors b. United States Mint c. Department of the Treasury d. Secretary of State a. Board of Governors 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 b. Maintaining a stable banking system 00:02 01:11 Which of the following is a unique feature of credit unions? a. Credit unions are typically owned and run by their members. b. Credit unions limit membership to certain people or groups. c. Credit unions offer a wide variety of banking services. d. Both A & B d. Both A & B Which type of account is typically the MOST liquid? a. Checking account b. Savings account c. Certificate of Deposit d. Exchanged Traded Fund a. Checking account