EF Module 1

Interest is:

• a charge for lending money to a bank
• the amount owed for borrowing money
• the amount added into your savings when opening a bank account
• a charge for the convenience of accessing money stored in your bank account 

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? 

• Annual Compounding 
• Semi-Annual Compounding
• Monthly Compounding
• Daily Compounding

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?

• Checking Account 
• Savings Account
• Money Market Account
• Certificate of Deposit (CD)

Which of the following is a type of savings vehicle?

• Checking Account 
• Savings Account
• Money Market Account
• Both Certificate of Deposit AND Money Market Account

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

• Investment Retirement Account (IRA)
• Certificate of Deposit (CD)
• Money Market Account
• Checking Account 

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.

Which of the following is considered a "want"? 

• Designer Sneakers 
• Socks
• Shoes 
• A warm winter coat

 Your friend is overspending and in need of a budget. What type of expense should they reduce next month?

• Going to the movies with friends.
• Buy fewer school books.
• Transportation to get to and from school.
• Purchasing medicine for their asthma.

The purpose of a budget is to:

• help you plan how you will spend the money you earn or receive
• stop you from spending too much money.
•  increase the balance of your savings account
• tell you how much you owe the government in taxes 

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?

• Checking Account 
• Savings Account 
• Money Market Account
•  Certificate of Deposit (CD)