Everfi 1-9

1- Your friend is overspending and in need of a budget. What type of expense should they reduce next month? A. Going to the movies with friends. B. Purchasing medicine for their asthma. C. Transportation to get to and from school. D. Buy fewer school books.

1- Interest is: A. a charge for lending money to a bank B. the amount owed for borrowing money C. the amount added into your savings when opening a bank account D. a charge for the convenience of accessing money stored in your bank account

1- John just opened a savings account and wants to maximize the amount of interest he earns. Which of the following actions would enable him to earn MORE interest? A. Selecting an account with a high interest rate. B. Leaving his money in the account for long period of time. C. Transferring money into his checking account each month. D. Both A & B

1- The purpose of a budget is to: A. help you plan how you will spend the money you earn or receive. B. stop you from spending too much money. C. increase the balance of your savings account D. tell you how much you owe the government in taxes

1- Which of the following is considered a "want"? A. Designer sneakers B. Shoes C. A warm winter coat D. Socks

1- To earn as much interest as possible, you should open a savings account that earns _______ interest and has the ______ interest rate. A. compound; lowest B. compound; highest C. simple; lowest D. simple; highest

1- Which type of account typically has very high liquidity, low or no interest, and low minimum balance? A. Investment Retirement Account (IRA) B. Certificate of Deposit (CD) C. Checking Account D. Money Market Account

1- Which of the following is the most important consideration when planning your budget? A. Budget for your needs before your wants. B. Budget for unexpected events in before expected expenses. C. Budget for expected events before unexpected expenses. D. Budget for fixed expenses before flexible expenses.

1- When it comes to saving money, what is a good rule of thumb? A. Keep most of your savings in your checking account B. Put aside money for savings each month C. Choose the savings account with the lowest interest rate D. Put anything you can't afford on your credit card

1- You are opening a savings account that earns compound interest. Which compounding frequency will earn you the MOST money? A. Compounding 1 time a year B. Compounding 4 times a year C. Compounding monthly D. Compounding daily

1- 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? A. Certificate of Deposit (CD) B. Checking Account C. Money Market Account D. Savings Account