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