Everfi Module 1 Savings

Front

Interest is:

Back

the amount owed for borrowing money

Front

Which savings account option should Anthony choose for the best rate of return on his interest? Options: Annual Compounding, Semi-Annual Compounding, Monthly Compounding, Daily Compounding

Back

Daily Compounding

Front

To earn as much interest as possible, you should open a savings account that earns ________________ interest and has the _______________ interest rate.

Back

compound; highest

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

You are opening a savings account that earns compound interest. Which compounding frequency will earn you the MOST money? Options: Compounding 1 time a year, Compounding 4 times a year, Compounding monthly, Compounding daily

Back

Compounding daily

Front

Which of the following is considered a "need"? Food, Pizza, Gatorade, Fruit

Back

Food

Front

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

Back

Checking Account

Front

Which of the following is generally true about savings vehicles? Options: Savings vehicles are only useful for long-term investments., People should evaluate different forms of savings vehicles based on their needs., Savings vehicles are never insured., All of the above

Back

People should evaluate different forms of savings vehicles based on their needs.

Front

Which of the following is the most important consideration when planning your budget?
Budget for your needs before your wants.
Budget for unexpected events in before expected expenses.
Budget for fixed expenses before flexible expenses.
Budget for expected events before unexpected expenses.

Back

Budget for your needs before your wants.