EverFi Financial Literacy Assessment

Interest is:

• A fee for withdrawing money early from a Certificate of Deposit

• 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

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

• compound; lowest
• compound; highest
• simple; lowest
• simple; highest 

Which of the following is a type of savings vehicle? (click all that apply)

• Certificate of Deposit

• Money Market Account

• Checking Account

• Savings Account

Which of the following accounts would give you the LEAST access to your money? 

• Simple savings account
• Certificate of Deposit
• Checking account
• Cash

Which type of account is typically the MOST liquid?

• Checking account

• Savings account

• Certificate of Deposit

• Money market account

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

• lower; harder
• lower; easier
• higher; harder
• higher; easier 

Which of the following payment types doesn't require you to pay upfront?

• Money Order

• Cashier's Check

• Credit Card

• All of the Above

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.

Which payment method typically charges the highest interest rates? 

• Credit cards. 
• Cashier's checks. 
• Pre-paid cards. 
• Payday loans. 

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?

• Low APR

• Low annual fees

• Rebates for gasoline and bonus sky miles for airline tickets and hotels

• A large credit limit