Everfi Financial Literacy

The main trade-off that all investors must consider is:

• income vs. cost

• diversity vs. uniformity

• stocks vs. bonds

• risk vs. return

Which form is your employer required to send to you before you file your tax return?

• Yearly paycheck stub

• 1040EZ

• W-2

• W-4

Which type of account typically has very high liquidity, low or no interest, and low minimum balance?

• Checking Account

• Money Market Account

• Certificate of Deposit (CD)

• Investment Retirement Account (IRA)

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?

• Certificate of Deposit (CD)

• Money Market Account

• Savings Account

• Checking Account

What activities might require you to provide your social security number?

• a. Starting a new job.

• b. Boarding an airplane.

• c. Buying something with a credit card.

• d. Renting a car.

Which type of account is typically the most liquid?

• Checking account

• Savings account

• Certificate of Deposit

• Exchange Traded Fund

What is the safest way to dispose of old bank account statements?

• a. Throw them out in a neighbor’s trash.

• b. Shred them in a paper shredder.

• c. Keep them bundled together in a folder.

• d. Put them in the trash unopened.

When buying a stock in a company, you are:

• diversifying your portfolio

• investing in an index fund

• loaning money to a company

• buying a portion of a company

Which of the following actions has NO impact on your credit score?

• a. You inquire about a credit card charge.

• b. You use a large percentage of your credit limit.

• c. You opened several new credit cards last week.

• d. You send in your credit card payment a couple days late.

If you are planning to carry a large balance on your credit card, which of the following features should you look for?

• Low APR

• Low balance transfer fees

• Lots of credit card rewards

• A large credit limit