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Everfi 1-5 Exam Questions & Answers

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Everfi 1-5 Exam Questions & Answers The purpose of a budget is to help you plan what? - ANS - how you will spend the money you earn or receive. What kind of bank account will help you most financially? - ANS - a saving account that compounds daily will benefit you most financially. What accounts are saving vehicles? - ANS - savings accounts, money market accounts and certificates of deposit. The rule of 72 is used to determine what? - ANS - the number of year it will take for an investment to double in value at a given interest rate. To earn as much interest as possible you should what? - ANS - open a savings account that earns compound interest and has the highest interest rate. A certificate will give you the____ access to your money - ANS - least What accounts typically offer no interest? - ANS - Checking accounts A payday lender typically have the ___ interest rates - ANS - highest Establishing the Federal government is NOT the responsibility of who? - ANS - the federal reserve What financial institution typically has membership requirements? - ANS - a credit union What type account is the MOST liquid? - ANS - a checking account What is the LEAST important part of a check - ANS - the memo line A debit card typically has what? - ANS - the lowest fees or costs. A term referring to the rate of yearly interest on your credit card - ANS - the APR What type of payment options requires you to pay upfront - ANS - cashiers check, prepaid card, and money orders. What payment type can typically help you stick to a budget? - ANS - debit card The maximum amount you can charge each billing cycle - ANS - a credit limit Missing a credit card payment will typically increase what? - ANS - Your credit card's APR. Equifax, Experian, and TransUnion are all what? - ANS - part of the big three credit reporting agencies. What is usually required for buying a new car, getting a credit card, and purchasing a home? - ANS - good credit Paying a credit card bill late, opening 3 credit cards at once, and ignoring a late payment notce can all do what? - ANS - potentially damage your credit score. Having a good credit score is important because? - ANS - it can impact your ability to be approved for bank loans What has NO impact on your credit score? - ANS - inquiring about a credit charge. A person with a high credit score is more likely to do what? - ANS - Pay their bills on time. Is a form filled out by students to receive federal financial aid for school. - ANS - FAFSA The return on investment (ROI) from education is typically highest for someone with what degree? - ANS - bachelors Borrowing a subsidized federal student loan means what? - ANS - the government will pay the interest rate on the loan until six months after you graduate. Period for student loans refers to the period of time after graduating or leaving school before you must begin paying back the student loans. - ANS - grace period An advantage of federal student loans - ANS - that they have a fixed interest rate. After sending in your FAFSA form you should receive what? - ANS - your student aid report back

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