EverFi Financial Literacy

Which of the following statements about savings accounts is FALSE?

a) Savings accounts pay interest on the money you deposit. b) Savings accounts limit the number of withdrawals that can be made each month. c) Savings accounts don't usually require a minimum balance. d) Savings accounts are best used to store money for longer-term goals.

If there is an issue with your bank statement or account balance

who should you contact to resolve the issue? , a) The local police station b) Your bank c) The CFPB d) All of the above

If there is a mistake with one of your bank accounts

who should you contact to resolve the issue?, a) The CFPB b) No one, you can't resolve the issue c) The local police station d) Your financial institution

Your financial institution can't help you if there is a mistake on your bank account statement

. a) True b) False

Which of the following statements about stocks is TRUE?

a) A stock is a share of ownership in a company. b) A stock is a type of debt investment that acts like a loan. c) A stock is a type of investment that invests in a mix of different types of investments. d) A stock is a type of savings account that pays interest based on current interest rates in the money market.

A mutual fund is _________.

a) A type of debt investment that acts like a loan. b) A share of ownership in a company. c) A type of investment that invests in a mix of different types of investments. d) A type of savings account that pays interest based on current interest rates in the money market.

A stock is ________.

a) A type of debt investment that acts like a loan. b) A type of investment that invests in a mix of different types of investments. c) A share of ownership in a company. d) A type of savings account that pays interest based on current interest rates in the money market.

Which of the following is NOT a common feature of a financial institution?

a) Access to ATMs b) Investment trading c) Direct deposit d) Debit cards

Which of the following is NOT a common feature of a financial institution?

a) Access to investment products b) Paper checks c) Access to ATMS d) Direct deposit

What should you do before you withdraw money from the ATM?

a) Ask someone nearby for help using the ATM. b) Find a hidden ATM so no one will see you withdraw money. c) Inspect the ATM to make sure it wasn't tampered with. d) Share your pin number with trusted friends so you don't forget it.

Which of the following financial institutions typically have the highest fees?

a) Check cashing and payday loan companies b) Credit unions c) Brick-and-mortar banks d) Internet banks

How can you avoid spending more than what is in your bank account?

a) Check your bank statement once a month. b) Ask your financial institution to notify you when you are close to $0 in your account. c) Keep your own records to compare with your financial institution's records. d) None of the above

Which type of bank account is best for everyday transactions?

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

Which type of bank account typically offers the least (if any) interest?

a) Checking account b) Savings account c) Money market account d) Certificate of deposit

How would you reconcile your bank account to avoid spending more than you have?

a) Contact your financial institution to read your transactions for the past month. b) Compare your own records of your spending with your financial institution's records. c) Review your bank statement once at the end of the month. d) None of the above.

Which of the following is NOT a common feature of a financial institution?

a) Direct deposit b) Paper checks c) Access to investment advice d) Checking and savings accounts

Which of the following statements is TRUE?

a) If there is a mistake on one of your bank accounts, there is nothing you can do about it. b) If there is a mistake on one of your bank accounts, you should wait 30 days as these issues tend to resolve themselves. c) If there is a mistake on your bank account, you should contact your financial institution immediately. d) None of the above.

What should you do before you use an ATM?

a) Inspect the ATM and its surroundings to make sure it is safe to use. b) Ask someone nearby for help using the ATM. c) Share your pin number with trusted friends so you don't forget it. d) Memorize your debit card number because you'll need to type it in at the ATM.

Which of the following statements about investing is FALSE?

a) Investing is a guaranteed way to grow your money. b) Investing is riskier than putting money in a savings account. c) Investing is best for long-term financial goals, like paying for retirement. d) On average, investing money in the stock market earns a higher return than putting money in a savings account.

What should you do before you approach an ATM?

a) Make sure it is hidden so no one will see you withdraw money. b) Ask someone nearby for help using the ATM. c) Share a picture of your debit card with your friends. d) Check for any suspicious people lurking nearby.

Which of the following statements about investing is TRUE?

a) On average, putting money in a savings account earns a higher return than investing money in the stock market. b) Investing is riskier than putting money in a savings accounts. c) Investing is best for short-term financial goals. d) Investing is a guaranteed way to make money.

Which savings account will earn you the most money?

a) One that compounds interest daily. b) One that compounds interest monthly. c) One that earns simple interest daily. d) One that earns simple interest monthly.

Which savings account will earn you the least money?

a) One that compounds interest daily. b) One that earns simple interest monthly. c) One that earns simple interest daily. d) One that compounds interest monthly.

Savings accounts typically offer more interest than what type of account?

a) Retirement account b) Money market account c) Checking account d) Certificate of deposit

Which of the following statements about savings accounts is FALSE?

a) Savings accounts don't usually pay interest on the money you deposit. b) Savings accounts limit the number of withdrawals that can be made each month. c) Savings accounts may require you to maintain a minimum balance to avoid paying a fee. d) Savings accounts are best used to store money for longer-term goals.

Which of the following statements about savings accounts is FALSE?

a) Savings accounts pay interest on the money you deposit. b) Savings accounts allow an unlimited amount of withdrawals each month. c) Savings accounts may require you to maintain a minimum balance to avoid paying a fee. d) Savings accounts are best used to store money for longer-term goals.

A savings account that compounds interest daily will earn a higher return than a savings account that pays simple interest daily.

a) TRUE b) FALSE

Which of the following statements about check cashing companies is TRUE?

a) They have limited operating hours during the day. b) They sometimes offer free services. c) They charge high fees. d) They delay when you can access your cash.

Which of the following statements about check cashing companies is FALSE?

a) They offer bad deals where you'll owe a lot more than you borrowed. b) They charge low fees. c) They can take a percentage of your check on top of fees. d) They make it easy to fall into a loan cycle that is hard to get out of.

Why is it important to reconcile your bank statements?

a) To avoid spending more than what is in your account. b) To detect any errors in your account. c) To determine if you were charged any fees. d) All of the above

A _______ is a share of ownership in a company.

a) bond b) stock c) mutual fund d) money market account

Investing is best for ________.

a) short-term financial goals, like building an emergency fund. b) earning a little interest while keeping your money safe. c) long-term financial goals, like paying for retirement. d) guaranteed fast growth on your money.