EverFi Modules Questions

Which of the following is a unique feature of credit unions? a) Credit unions are typically owned and run by their members. b) Credit unions limit membership to certain people or groups. c) Credit unions offer a wide variety of banking services. d) Both A & B

d) Both A & B

Which payment type is best if you are trying to stick to a budget? a) Debit Card b) Payday Loan c) Credit Card d) Cash Advance

a) Debit Card

Which of the following statements are TRUE about credit scores? a) Credit scores reflect how likely individuals are to repay their debts. b) Only the credit bureaus know exactly how credit scores are calculated. c) Both A & B d) Neither A nor B

c) Both A & B

Which of the following is true? a) Checks are the most widely accepted form of payment b) Checks and Debit Cards both withdraw money directly from a bank account. c) Debit Cards often have a higher interest rate than Credit Cards. d) Debit cards offer the highest level of fraud protection.

b) Checks and Debit Cards both withdraw money directly from a bank account.

Which payment type can help you stick to a budget? a) Credit cards b) Debit cards c) Payday loans d) Cash advances

b) Debit cards

Which best explains what a credit score represents? a) A number expressing your yearly income. b) A number showing how likely you are to have more than one credit card. c) A numerical rating that shows how much money you have in your bank account. d) A numerical rating that expresses how likely you are to repay your debts.

d) A numerical rating that expresses how likely you are to repay your debts.

Which of the following conditions will maximize the amount of interest you earn? a) A high interest rate & long time period b) A high interest rate & short time period c) A low interest rate & long time period d) A low interest rate & short time period

a) A high interest rate & long time period

The amount of money you can charge to a credit card is called: a) Credit Limit b) Annual Percentage Rate c) Balance Transfer d) Annual Fee

a) Credit Limit

Which of the following is considered a "want"? a) Designer Sneakers b) A warm winter coat c) Socks d) Shoes

a) Designer Sneakers

Which of the following statements about FDIC-insured accounts is correct? a) FDIC insures deposits up to $250,000 per person per bank b) All credit unions and retail banks provide FDIC-insured accounts c) Both A & B d) Neither A nor B

a) FDIC insures deposits up to $250,000 per person per bank

"Compounding frequency" refers to: a) How often your interest is calculated and added back into your account b) How easily you can add money into your account c) What type of interest your account earns d) What interest rate you can expect from your account

a) How often your interest is calculated and added back into your account

What is the typical relationship between time and interest rate? a) Longer time period usually equal higher interest rates b) Shorter time period usually equal higher interest rates c) Longer time periods usually have no affect on interest rates d) Shorter time periods usually have no affect on interest rates

a) Longer time period usually equal higher interest rates

What financial behaviors will typically lead to a low credit score? a) Maxed out credit cards b) Fully paid balances c) On-time payments d) Long credit history

a) Maxed out credit cards

Making a credit card minimum payment: a) Means you are paying a small portion of your total credit card debt b) Is the same thing as making a late credit card payment c) Will have a negative effect on your credit score d) Will cause your credit card to be cancelled

a) Means you are paying a small portion of your total credit card debt

Which of the following fees would likely be the highest? a) Overdraft fee b) ATM fee c) Monthly service fee d) Account transfer fee

a) Overdraft fee

Which of the following is true of a person with a high credit score? a) They are more likely to pay bills on time. b) They are less likely to pay off debts. c) They probably have a high balance on multiple credit cards d) Both B and C are correct.

a) They are more likely to pay bills on time.

Which of the following is NOT true of credit cards? a) They are the best payment type to use when trying to stick to a budget. b) You can be charged a fee if you are late making a monthly payment. c) Some offer rewards, like cash back or airline miles. d) They offer the highest level of fraud protection.

a) They are the best payment type to use when trying to stick to a budget.

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

a) help you plan how you will spend the money you earn or receive.

The primary goal of the Federal Reserve system is to: a) maintain a safe and stable banking system b) keep banks up-to-date on the latest economic research c) provide budget recommendations to the Treasury Department d) ensure interest rates for savings accounts stay high

a) maintain a safe and stable banking system

When would you need to use the Rule of 72? a) To figure out the interest rate for your savings account b) To find out how long it will take your money to double c) To estimate how much money you'll have in your account in 72 years d) To calculate a reasonable monthly savings goal

b) To find out how long it will take your money to double

Which of the following is the MOST important consideration when planning your budget? a) Budget for expected events before unexpected expenses b) Budget for your needs before your wants c) Budget for fixed expenses before flexible expenses d) Budget for unexpected events before expected expenses

b) Budget for your needs before your wants

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? a) Checking Account b) Certificate of Deposit (CD) c) Money Market Account d) Savings Account

b) Certificate of Deposit (CD)

Which of the following is a primary responsibility of the Federal Reserve Bank? a) Collect taxes b) Establish monetary policy c) Print money d) Pass monetary laws

b) Establish monetary policy

If your credit reports show different scores, what should you do? a)Nothing, the credit bureaus will recognize the mistake and fix it for you. b) Get in touch with credit bureaus to see if they have different or inaccurate information on your credit history. c) Research online to see how you can get into the system and fix it yourself. d) Visit your local bank and have them fix it for you.

b) Get in touch with credit bureaus to see if they have different or inaccurate information on your credit history.

Your friend is overspending and in need of a budget. What type of expense should they reduce next month? a) Purchasing medicine for their asthma. b) Going to the movies with friends. c) Buy fewer school books. d) Transportation to get to and from school.

b) Going to the movies with friends.

Which of the following factors will have the greatest impact on your credit score? I. Length of Credit History II. Payment History III. Amounts Owed IV. Types of Credit Used a) I & II b) II & III c) I & III d) II & IV

b) II & III

Which of the following statements about minimum payments is INCORRECT? a) Minimum payments are typically only 2-4% of your total debt b) If you send in the minimum payment, you will be charged a late fee. c) You will still pay interest on your balance if you submit the minimum payment. d) Paying the minimum means you are only paying off a portion of your total debt.

b) If you send in the minimum payment, you will be charged a late fee.

Having a good credit score is important because: a) It can impact your ability to get a driver's license b) It can impact your ability to be approved for bank loans c) It can impact how much you will have to pay the government in taxes d) It can impact how much you will have to pay for college

b) It can impact your ability to be approved for bank loans

Which of the following can increase your credit card's APR? a) Paying the minimum b) Missing a credit card payment c) Paying off the full balance d) Cashing in on rewards points

b) Missing a credit card payment

Which of the following payment types require you to pay upfront? a) Money orders & credit cards b) Money orders & pre-paid cards c) Merchant cards & credit cards d) Merchant cards & pre-paid cards

b) Money orders & pre-paid cards

Which of the following is generally true about savings vehicles? a) Savings vehicles are only useful for long-term investments b) People should evaluate different forms of savings vehicles based on their needs c) Savings vehicles are never insured d) All of the above

b) People should evaluate different forms of savings

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

b) Put aside money for savings each month

What's the purpose of balancing or monitoring your checking account? a) To find out which checks you have bounced b) To help you calculate how much money you have in your account c) To keep an estimation of how many checks you write d) To stop identity theft from occurring

b) To help you calculate how much money you have in your account

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

b) the amount owed for borrowing money

Which of the following tells you how much your credit card interest will be if you only pay the minimum balance each month? a)Late Fee b) Annual Membership Fee c) Annual Percentage Rate d) Balance Transfer Fee

c) Annual Percentage Rate

Which type of account typically has very high liquidity, low or no interest, and low minimum balance? a) Money Market Account b) Cartificate of Deposit (CD) c) Checking Account d) Investment Retirement Account (IRA)

c) Checking Account

Which action is LEAST important to maintaining a healthy credit score? a) Make on-time payments b) Check your credit report annually c) Know your exact credit score d) Fix inaccurate information on your credit report

c) Know your exact credit score

Which is LEAST important to maintaining a healthy credit score? a) Making on-time payments b) Checking your credit report annually c) Knowing your exact credit score d) Letting the credit bureaus know about any inaccurate information on your credit report

c) Knowing your exact credit score

Which behaviors might lead someone to have a low credit score? a) Having a long credit history. b) Having a debit card. c) Missing a car payment. d) Always paying the full balance of a credit card each month.

c) Missing a car payment.

What's the best strategy for avoiding ATM fees? a) Only use ATMs close to your house b) Only use ATMs to withdraw cash c) Only use ATMs in your bank's network d) Only use ATMs you have used before

c) Only use ATMs in your bank's network

Which of the following is not a type of bank? a) Retail Bank b) Credit Union c) Payday Lender d) Online Bank

c) Payday Lender

Which of the following statements are TRUE about credit cards? I. When you use a credit card, the money comes directly out of your account. II. Credit cards typically offer more fraud protection than debit cards. III. Transactions made with a credit card can impact your credit score. a) Statement I b) Statement II c) Statements II & III d) Statements I, II & III

c) Statements II & III

What is a credit limit? a) The required payment to your credit card company. b) How many credit cards you can own. c) The maximum amount you can charge each billing cycle. d) The amount of interest you are charged each month.

c) The maximum amount you can charge each billing cycle.

What can you do it make sure you have a healthy credit report? a) Review your credit report each year. b) Make sure everything on your credit report is correct. c) Dispute any errors you find on your report with your credit agency. d) All of the above.

d) All of the above.

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.

d) All of the above.

What is the amount of money you still owe to their credit card company called? a)Credit Card Fee b) Credit Card Limit c) Credit Card Interest d) Credit Card Balance

d) Credit Card Balance

Which of the following is NOT one of the responsibilities of the Federal Reserve? a) Supervising the Reserve banks b) Maintaining a stable banking system c) Setting the nation's monetary policy d) Establishing the federal budget

d) Establishing the federal budget

All of the following make up the big three credit reporting agencies EXCEPT: a) Equifax b) TransUnion c) Experian d) Federal Reserve

d) Federal Reserve

Which is true of someone with a low credit score? I. They probably make on time payments. II. They may not be able to rent the apartment they want. III. They are more likely to miss a payment than someone with a high credit score a) I b) II c) III d) II and III

d) II and III

What part of a check is the LEAST important? a) Routing number b) Signature line c) The check number d) Memo line

d) Memo line

All of the following are fees typically charged by credit card companies EXCEPT: a) Late payment fee b) Balance transfer fee c) Annual membership fee d) Reload fee

d) Reload fee

If you need to set up direct deposit, which information from your check would you likely need? a) Check number b) Memo line c) Numerical amount d) Routing number

d) Routing number

What is a credit card balance? a) The amount of interest you must pay the credit card company b) The required minimum payment to your credit card company c) A way to track your incoming and outgoing purchases d) The amount of money you still owe to the credit card company

d) The amount of money you still owe to the credit card company

With a traditional savings account, you could be charged a fee if: a) You close the account b) You deposit too much money at once c) You open an account online d) You withdraw money too often

d) You withdraw money too often

Savings accounts usually offer _________ interest rates than checking accounts. It is _________ to access your money in a savings account than in a checking account. a) lower; harder b) lower; easier c) higher; easier d) higher; harder

d) higher; harder

When making college visits, you may be able to... a) receive reimbursement for your college visit costs b) schedule a tour of the college campus c) attend a college class to see what it's like d) Both B & C e) All of the above

e) All of the above