Financial Literacy Practice #3

Use the Rule of 72 to calculate how long it will take for your money to double it it's earning 6% in interest.

• 12 years

• 16 years

• 1 year

• 72 years

Which will most benefit you financially?

• A savings account that does not compound interest

• A savings account that compounds interest daily

• A savings account that compounds annually

• A savings account that compounds monthly

Which of the following are examples of types of savings vehicles (meaning ways to save money)? Check all that apply

• Certificate of deposit

• Money market account

• Savings account

• Checking account with no interet

Which type of bank account typically offers no interest?

• Savings

• Money Market

• Checking

• CD (Certificate of Deposit)

Which of the following have the highest fees?

• Payday lender

• Credit Union

• Retail bank

• Credit Union

Which of the following typically has the lowest fees or costs to use?

• Debit card

• Credit card

• Cash advance

• Payday Loan

The term referring to the rate of year interest for your credit card is commonly known as:

• Grace period

• COD

• default rate

• APR

Your credit history is tracked by all of the following EXCEPT:

• Equifax

• TransUnion

• Federal Reserve

• Experian

The form filed by students to receive financial aid for school is known as:

• FIFA

• FICO

• FAFSA

• CIA

Borrowing a subsidized federal student loan means:

• The government will repay the loan in full provided you graduate.

• The government will repay the interest on the loan until 6 months after you graduate.