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WorksheetsEverfi
Total questions: 37
Worksheet time: 24mins
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.
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?
Certificate of Deposit (CD)
Money Market Account
Savings Account
Checking Account
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)
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
Which of the following is not one of the responsibilities of the federal reserve?
Supervising the Reserve banks
Maintaining a stable banking system
Setting the nation's monetary policy
Establishing the federal budget
Which type of financial institution typically has membership requirements?
Credit Union
Online Commercial Bank
Commercial Bank
Federal Reserve Bank
Which of the following is a primary responsibility of the federal reserve bank?
Establish monetary policy
Write monetary laws
Collect taxes
Print money
Which of these 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
How often should you typically monitor your checking account?
Monthly
Yearly
Daily
Every three months
What part of a check is the least important?
The check number
Signature line
Memo line
Routing number
What's the best strategy for voiding ATM fees
Only use ATMs close to your house
Only use ATMs to withdraw cash
Only use ATMs in your banks network
Only use ATMs you have used before
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
Which of the following is a variable expense?
Student loan payments
Groceries
Rental payments
Health insurance
Which of the following is a fixed expense?
Clothing purchases
Groceries
Rental payments
Movie tickets
Which of the following payment types require you to pay upfront?
Money order
Cashier's check
Pre-paid card
All of the above
Which of the following is true?
Checks and Debit Cards both withdraw money directly from a bank account
Checks are the most widely accepted form of payment
Debit Cards often have a higher interest rate
Debit Cards offer the highest level of fraud protection
If you are planning to carry a large balance on your credit card, which of the following features should you look for?
Low APR
Low balance transfer fees
Lots of credit card rewards
A large credit limit
What is a credit limit
The required payment to your credit card company
The amount of interest you pay
The maximum amount you can charge each billing cycle
How many credit cards you can own
Which of the following can increase your credit card's APR
Paying the minimum
Missing a credit card payment
Paying off the full balance
Cashing in on rewards points
Which of the following statements about credit scores is TRUE?
a. Credit scores reflect how likely individuals are to repay their debts.
b. Credit scores range from the low 300’s to the mid 800’s.
c. Each person has three credit scores.
d. All of the above.
All of the following make up the big three credit reporting agencies EXCEPT:
Equifax
TransUnion
Experian
Federal Reserve
Which of the following actions has NO impact on your credit score?
a. You inquire about a credit card charge.
b. You use a large percentage of your credit limit.
c. You opened several new credit cards last week.
d. You send in your credit card payment a couple days late.
True or False. Free money. One of the best places to get free money is through grants and scholarships. Since these aren't loans, you can use them to pay for school expenses like tuition without having to pay anyone back.
True
False
Subsidized or Unsubsidized. Which loan type is available to everyone?
Subsidized
Unsubsidized
Good credit is usually required for which of the following:(Check all that apply)
buying a new car
adopting a new pet
getting a credit card
buying a house
buying used furniture
Which statement is most correct when choosing to rent or buy a home?
Buy a home because it is better than renting one.
Rent a home only until you can afford to buy one.
Rent a home because it is better than buying one.
Buy or rent a home based on your individual circumstance.
Which of the following should you take into consideration when deciding to buy or lease a car? (Check all that apply)
Cost of the car
Car interior and features
Monthly loan payment
Down payment
Your monthly budget
Which form is your employer required to send to you before you file your tax return?
Yearly paycheck stub
1040EZ
W-2
W-4
When referring to student loans, what is a grace period?
The time period between graduating college and starting your first job when you don't have to pay back the loans
The period after graduating or leaving school before you must begin paying back student loans
The amount of time you have to pay back the entire student loan amount
None of these
The regular payment for an insurance policy is called a:
co-payment
deductible
premium
claim
Which of the following provides the best protection against identity theft?
Never use a credit card
Open up a new bank account every year
Pay all bills with cash only
Shred documents that contain personal information
When buying a stock in a company, you are:
diversifying your portfolio
investing in an index fund
loaning money to a company
buying a portion of a company
The main trade-off that all investors must consider is:
income vs. cost
diversity vs. uniformity
stocks vs. bonds
risk vs. return
