EverFi Financial Literacy Assessment

Front

Interest is:

Back

The amount owed for borrowing money.

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

Which of the following accounts would give you the LEAST access to your money? Simple savings account, Certificate of Deposit, Checking account, Cash

Back

Certificate of Deposit

Front

Which type of account is typically the MOST liquid?
Options:
Checking account,
Savings account,
Certificate of Deposit,
Money market account

Back

Checking account

Front

Savings accounts usually offer _______ interest rates than checking accounts.  It is _________ to access your money in a savings account than in a checking account.

Back

higher; harder

Front

Which of the following payment types doesn't require you to pay upfront? Money Order, Cashier's Check, Credit Card, All of the Above

Back

Credit Card

Front

Which of the following statements comparing debit cards to credit cards is TRUE?
Debit cards allow you to draw funds directly from your checking account.
Debit cards typically offer greater fraud protection than credit cards.
Debit cards never require a signature to finalize a purchase like a credit card.
Debit Cards charge higher interest rates on purchases than credit cards.

Back

Debit cards allow you to draw funds directly from your checking account.

Front

Which payment method typically charges the highest interest rates? Options: Credit cards, Cashier's checks, Pre-paid cards, Payday loans.

Back

Payday loans.

Front

If you are planning to get a new credit card and will only use it for groceries and will pay your credit card bill in full each month, which would be the most important feature to look for in a new card?

Back

Low annual fees

Front

The annual percentage rate on a credit card determines:

Back

The amount of interest you are charged on credit card purchases.