Everfi Financial Literacy

Front

Interest is:

Back

the amount owed for borrowing money

Front

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? Options: Annual Compounding, Semi-Annual Compounding, Monthly Compounding, Daily Compounding

Back

Daily Compounding

Front

What is the typical relationship between time and interest rate?

Back

Longer time period usually equals higher interest rates.

Front

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?

Back

Certificate of Deposit (CD)

Front

Which type of account typically has very high liquidity, low or no interest, and low minimum balance?

Back

Checking Account

Front

The purpose of a budget is to:

Back

help you plan how you will spend the money you earn or receive.

Front

Which type of financial institution typically has membership requirements?

Back

Credit Union

Front

Which of these fees would likely be the highest: Overdraft fee, Account transfer fee, Monthly service fee, ATM fee?

Back

Overdraft fee

Front

The numbers on the bottom of a typical check represent all of the following except: Routing Number, Account Number, Check Number.

Back

Social Security number

Front

What part of a check is the least important? Options: The check number, Signature line, Memo line, Routing number

Back

Memo line