Everfi Module 1 Questions & Answers
which of the following is NOT a common feature of a financial institution? - ANS - access to
investment products, investment trading, access to investment advice
which of the follow
...
Everfi Module 1 Questions & Answers
which of the following is NOT a common feature of a financial institution? - ANS - access to
investment products, investment trading, access to investment advice
which of the following statements about check cashing companies is TRUE? - ANS - they
charge high fees
which of the following financial institutions typically have the highest fees? - ANS - check
cashing and payday loan companies
which of the following statements about check cashing companies is FALSE? - ANS - they
charge low fees
which type of bank account typically offers the least (if any) interest? - ANS - checking account
savings accounts typically offer more interest than what type of account? - ANS - checking
account
which type of bank account is best for everyday transactions? - ANS - checking account
t/f: a savings account that compounds interest daily will earn a higher return than a savings
account that pays simple interest daily - ANS - true
which savings account will earn you the least money? - ANS - one that earns simple interest
monthly
which savings account will earn you the most money? - ANS - one that compounds interest daily
why is it important to reconcile your bank statements? - ANS - to avoid spending more than what
is in your account, to detect any errors in your account, and to determine if you were charged any
fees
how can you avoid spending more than what is in your bank account? - ANS - keep your own
records to compare with your financial institution's records
how would you reconcile your bank account to avoid spending more than you have? - ANS -
compare your own records of your spending with your financial institution's records
what should you do before you withdraw money from the ATM? - ANS - inspect the ATM to
make sure it wasn't tampered with
what should you do before you approach an ATM? - ANS - check for any suspicious people
lurking nearby
what should you do before you use an ATM? - ANS - inspect the ATM and its surroundings to
make sure it is safe to use
which of the following statements about savings account is FALSE? - ANS - savings accounts
allow an unlimited amount of withdrawals each month
which of the following statements about savings accounts is FALSE? - ANS - savings accounts
don't usually require a minimum balance, savings accounts don't usually pay interest on the
money you deposit
which of the following statements is TRUE? - ANS - if there is a mistake on your bank account,
you should contact your financial institution immediately
if there is a mistake with one of your bank accounts, who should you contact to resolve the
issue? - ANS - your financial institution
if there is an issue with your bank statement or account balance, who should you contact to
resolve the issue? - ANS - your bank
t/f: your financial institution can't help you if there is a mistake on your bank account statement -
ANS - false
which of the following statements about investing is TRUE? - ANS - investing is riskier than
putting money in a savings accounts
investing is best for... - ANS - long term financial goals like paying for retirement
which of the following statements about investing is FALSE? - ANS - investing is a guaranteed
way to grow your money
a stock is... - ANS - a share of ownership in a company
a mutual fund is... - ANS - a type of investment that invests in a mix of different types of
investments
which of the following statements about stocks is TRUE? - ANS - a stock is a share of ownership
in a company
paying only the minimum balance on your credit card can lead to... - ANS - paying more interest
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