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WorksheetsEverfi Financial Literacy
Total questions: 50
Worksheet time: 2hrs 40mins
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 type of financial institution typically has membership requirements?
Credit Union
Online Commercial Bank
Commercial Bank
Federal Reserve Bank
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
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 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.
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.
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 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
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
Which type of account is typically the most liquid?
Checking account
Savings account
Certificate of Deposit
Exchange Traded Fund
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
Which of these fees would likely be the highest
Overdraft fee
Account transfer fee
Monthly service fee
ATM fee
Which payment type can help you stick to a budget
Credit cards
Debit cards
Payday loans
Cash advances
Which of the following will happen if you miss a monthly credit card payment
You will be charged a late fee
You will lose reward points
Your APR will increase next month
Both A & B
Making a credit card minimum payment
Means you are paying a small portion of your total credit card debt
Is the same thing as making a late payment
Will have a negative effect on your credit score
Will cause your credit card to be cancelled
which of the following are true if you pay only the minimum amount each month
You will be charged interest
Your APR will increase
You may be in debt for a long time
Both A & B
Which of the following is the BEST way to protect against identity theft?
a. Discard old account statements weekly.
b. Use only local public access Wi-Fi.
c. Change online account passwords frequently.
d. Avoid emails from people who do not like you.
Which of the following scenarios might indicate that you have been a victim of identity theft?
a. Your credit report displays accounts you did not open.
b. You do not pay your credit card bill on time.
c. Both A and B
d. Neither A nor B
What is the safest way to dispose of old bank account statements?
a. Throw them out in a neighbor’s trash.
b. Shred them in a paper shredder.
c. Keep them bundled together in a folder.
d. Put them in the trash unopened.
Where could an identity theft access your personal information?
a. While on public WiFi at your neighborhood coffee shop.
b. From stored password data on your cell phone.
c. Both A and B
d. Neither A nor B
What activities might require you to provide your social security number?
a. Starting a new job.
b. Boarding an airplane.
c. Buying something with a credit card.
d. Renting a car.
Consumer protection laws are meant to:
a. Protect businesses from consumers.
b. Prevent unfair or deceptive business practices.
c. Protect consumers from spending too much money.
d. Prevent consumers from buying unnecessary items.
