Everfi Personal Finance

Which will maximize the amount of interest earned on your money? High interest rate and long period of time
Compounding frequency refers to how often your interest is calculated and added back into your account. The more frequently this happens, the more interest you will earn.
Rule of 72 an estimate used to find out how long it will take your money to double. All you need to know is your interest rate!
The primary goal of the Federal Reserve system is to: maintain a safe and stable banking system.
Which of the following statements about FDIC-insured accounts is correct? FDIC-insured accounts are protected up to $250,000 per person per bank.
If you need to set up direct deposit, which information from your check would you likely need? The routing number indicates which financial institution issued the check, and is used to set up direct deposit.
Which of the following payment types require you to pay upfront? Only money orders and pre-paid cards require upfront payment. Credit cards and merchant cards are forms of credit.
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. Credit card transactions can impact your credit score. Credit cards also typically offer more fraud protection than debit cards.
All of the following are fees typically charged by credit card companies EXCEPT: reload fees. Although these fees are not charged for all cards, annual fees, balance transfer fees and late payment fees are all common credit card fees.
Which of the following statements about minimum payments is INCORRECT? You will not be charged a late fee if you make the minimum payment on your credit card balance.
Which of the following statements are TRUE about credit scores? Credit scores indicate the likelihood an individual will repay his/her debt. We have an idea of how the scores are calculated, but only the credit bureaus know the exact calculation.
What financial behaviors will typically lead to a low credit score? Maxing out your credit cards will typically lower your credit score.
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 Your payment history and your amount of debt has the largest impact on your credit score.
Which is LEAST important to maintaining a healthy credit score? It’s most important that you regularly check your reports, dispute inaccurate information, and consistently make your payments on time. Knowing your exact credit score can be useful, but not the most important information.
When looking to finance higher education, what is the best order to look for funding sources? When paying for higher education, always try to find free money sources – like grants & scholarships – first. Then look into federal student loans, since these offer low and fixed interest rates.
Which of the following statements about the FAFSA process are TRUE? The only way to apply for the federal work-study program is by completing the FAFSA form.
Which of the following correctly pairs a financing option with its description? 529 Savings Plans are a great way to save for higher education, and offer various tax benefits.
Which of the following statements is correct? New cars typically lose the most value in the first year after they are purchased.
A typical housing lease may require a tenant to: repair damages and purchase renters insurance
Which of the following will affect the size of your monthly mortgage payment? size of down payment, length of mortgage and purchase price
Which of the following insurance types will cover the possessions inside your home? Both renter’s and homeowner’s insurance will cover possession inside your home. Only homeowner’s insurance will cover your home itself.
Which of the following best describes how auto insurance companies manage risk? Auto insurance companies manage the increased cost associated with high-risk drivers by both charging them higher rates and balancing them out with low-risk drivers.
Which of the following retirement plans offer tax benefits? IRA 401k 401b
What is a possible reason a company would sell stock? a company often issues stock to raise money so it can grow and expand.
Investors nearing retirement will typically shift their investment portfolios to include ________ risk investments. lower
rule of 72 divide 72 by the interest rate
spend more money then make debt and bad credit score
simple vs compound interest s- principle x interest rate x time compound only once a yearc- principle( 1+i)^n
compounding the more times you compound the more earn in interest
what accounts are best for saving CDs and money market pay higher interest yet need more as minimum balance
APR interest you pay when you use a credit card
subsidized federal loan This is a type of federal student loan on which the government pays the interest that accrues while a student is in school
unsub This is a type of federal student loan on which the government does not pay the interest that accrues while a student is in school.

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