WorksheetsEverfi Financial Literacy Savings and Banking
Total questions: 25
Worksheet time: 50mins
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
What is the typical relationship between time and interest rate?
Longer time period usually equals higher interest rates.
Shorter time period usually equals higher interest rates.
Longer time periods usually have no effect on interest rates.
Shorter time periods usually have no effect on interest rates.
Which of the following is considered a "need"?
Food
Pizza
Gatorade
Fruit
Which of the following is a type of savings vehicle?
Certificate of Deposit
Money Market Account
Checking Account
Both Certificate of Deposit and Money Market
Which type of account typically has very high liquidity, low or no interest, and low minimum balance?
Checking Account
Money Market Account
Certificate of Deposit (CD)
Investment Retirement Account (IRA)
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"?
A warm winter coat
Shoes
Designer Sneakers
Socks
Which of the following accounts will give you the LEAST access to your money?
Simple savings account
Certificate of Deposit (CD)
Checking account
Cash
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?
Certificate of Deposit (CD)
Money Market Account
Savings Account
Checking Account
When it comes to saving money, what is a good rule of thumb?
Keep most of your savings in your checking account
Put aside money for savings each month
Choose the savings account with the lowest interest rate
Put anything you can’t afford on your credit card
Which type of financial institution typically has membership requirements?
Credit Union
Online Commercial Bank
Commercial Bank
Federal Reserve Bank
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 type of account will typically have the highest interest rate?
Checking Account
Savings Account
Money Market Account
Certificate of Deposit (CD)
Which of the following fees would likely be the highest?
Overdraft fee
Account transfer fee
Monthly service fee
ATM fee
The numbers on the bottom of a typical check represent all of the following EXCEPT?
Social Security Number
Routing Number
Account Number
Check Number
What part of a check is the LEAST important?
The check number
Signature line
Memo line
Routing number
Which of the following represent typical account fees?
ATM fee
Service fee
Minimum balance fee
All of the above
Which of the following is not a type of bank?
Credit Union
Online Bank
Payday Lender
Retail Bank
What's the best strategy for avoiding ATM fees?
Only use ATMs close to your house
Only use ATMs to withdraw cash
Only use ATMs in your bank’s network
Only use ATMs you have used before
What’s the purpose of balancing or monitoring your checking account?
To find out which checks you have bounced
To help you calculate how much money you have in your account
To keep an estimation of how many checks you write
To stop identity theft from occurring
The best way to ensure the accuracy and safety of your accounts is to:
Monitor your online accounts regularly
Shred your paper account statements weekly
Call your customer service center daily
Balance your checkbook annually
With a traditional savings account, you could be charged a fee if:
You deposit too much money at once
You withdraw money too often
You deposit money too often
You close the account
