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Quizzes > High School Quizzes > Career

Everfi Truist Answers Practice Quiz

Master Financing Higher Education with Confidence

Difficulty: Moderate
Grade: Grade 11
Study OutcomesCheat Sheet
Paper art illustrating a trivia quiz on EverFi Truist Finance Focus for high school students.

Easy
What is a budget?
A plan that outlines expected income and expenses over a period of time
A record of past transactions only
A summary of investment returns
A guarantee of fixed income
A budget is a forward-looking plan that helps you manage money by outlining expected income and expenses. This approach assists in making informed spending and saving decisions.
Which of the following best distinguishes a checking account from a savings account?
A checking account is used for daily transactions, while a savings account is intended for storing money and earning interest
A checking account earns high interest while a savings account does not
A checking account cannot be linked to a debit card
A savings account only allows for frequent transactions
Checking accounts are designed for everyday transactions such as withdrawals and payments, whereas savings accounts are meant to hold money and earn interest over time. This distinction is essential for sound financial planning.
What is interest in a savings account?
The extra fee charged by banks on transactions
The percentage of the account balance paid to the saver over time
A penalty for withdrawing money
A one-time bonus for opening an account
Interest is the additional money a bank pays to you, usually expressed as a percentage of your account balance over time. This payment incentivizes saving and is a fundamental concept in personal finance.
What is the primary benefit of starting to save money early?
It increases the immediate disposable income
It allows for exponential growth through compound interest
It eliminates the need for a budget
It guarantees a higher credit score
Beginning to save early maximizes the benefits of compound interest, where interest is earned on both the principal and accumulated interest. This long-term growth strategy is a cornerstone of financial planning.
What does a credit score represent?
A measure of how much money is in your bank account
A rating of your creditworthiness based on your financial history
The total amount of credit you have available
The number of years you have been employed
A credit score is a numerical summary of your credit history that indicates your creditworthiness. It is crucial for lenders to assess the risk of lending money.
Medium
What is compound interest?
Interest calculated solely on the principal amount
Interest calculated on both the principal and accumulated interest
A fee charged for loan service
A one-time bonus added to a bank account
Compound interest is the process where interest is earned on both the initial principal and the accumulated interest from previous periods. This mechanism promotes exponential growth over time.
How does inflation affect purchasing power?
It increases the value of money over time
It decreases the value of money, reducing the ability to buy goods and services
It has no impact on the cost of living
It only affects high-income households
Inflation causes a general rise in prices, which effectively reduces the purchasing power of money. Recognizing this impact is vital for long-term financial planning.
In personal finance, what does diversification mean?
Focusing all investments in a single asset class
Spreading investments across different assets to mitigate risk
Investing only in stocks
Avoiding any form of risk in investments
Diversification involves spreading your investments across multiple asset classes to reduce risk. This strategy minimizes the impact of any single investment's poor performance.
Why is tracking expenses important for effective budgeting?
It limits the growth of your savings
It helps identify spending habits and supports future financial planning
It only matters for large businesses
It ensures sales tax calculation accuracy
Keeping track of expenses provides clear insight into your spending patterns, which can reveal opportunities to save. This self-awareness is essential for refining your budget and planning for financial goals.
Which factor most significantly influences the amount of interest earned on a savings account?
The frequency of deposits
The interest rate provided by the financial institution
The number of transactions
The account holder's age
The interest rate is the key factor that determines how much your money can grow in a savings account. Even minor variations in the rate can have significant long-term effects on your earnings.
How do credit cards help build credit history when used responsibly?
By causing an immediate drop in credit scores
By showing a history of responsible borrowing and repayment behavior
By avoiding all types of purchases
By guaranteeing a high interest rate
Using a credit card responsibly by making timely payments can build a positive credit history. This history is important for obtaining favorable terms on future credit products.
What does APR stand for and what does it measure?
Annual Percentage Rate; it measures the cost of borrowing money on a yearly basis
Annual Payment Ratio; it measures salary growth
Average Percentage Return; it evaluates investment performance
Adjusted Personal Rate; it calculates bank fees
APR stands for Annual Percentage Rate and is used to express the yearly cost of borrowing funds. It enables comparisons between different credit products by standardizing borrowing costs.
How can risk management strategies be applied to personal finance?
By avoiding all financial products
By evaluating potential financial losses and planning to mitigate them
By investing solely in high-risk options
By eliminating all forms of spending
Risk management in personal finance involves identifying potential financial pitfalls and preparing strategies to reduce their impact. This process is vital for maintaining long-term financial stability.
Why is setting short-term financial goals important?
It distracts from long-term plans
It helps in achieving immediate milestones and motivates saving
It increases immediate liabilities
It is only useful for teenagers
Short-term financial goals break down long-term objectives into manageable segments. They provide immediate targets that keep you motivated and disciplined in your financial planning.
Which investment strategy involves reducing risk by spreading money across different asset classes?
Concentrated investing
Diversification
Speculation
High-frequency trading
Diversification aims to lower risk by allocating investments across various asset classes. This method helps cushion the impact if one investment underperforms.
Hard
In a scenario where you have a fixed income, how might you allocate funds among necessities, savings, and discretionary spending?
Spend all on discretionary items
Prioritize necessities, allocate a portion to savings, and limit discretionary spending according to a budget
Allocate most funds to savings and ignore necessities
Divide funds equally without consideration for needs
When income is fixed, it is crucial to prioritize essential expenses before allocating funds to savings or discretionary spending. This balanced approach ensures that basic needs are met while also planning for future financial security.
When comparing loans with different interest rates and terms, what financial factors should be considered to determine the most cost-effective option?
Only the monthly payment amounts
Both the interest rate and the loan term, along with additional fees
The color of the loan brochure
The prestige of the lending institution
A thorough loan comparison involves more than just the monthly payments. Considering the interest rate, term, and any extra fees provides a complete picture of the loan's total cost.
In analyzing the benefits of compound interest, why is time considered a crucial factor?
Because it lowers the principal amount
Because longer time frames allow for exponential growth by reinvesting interest over time
Because it reduces the effect of interest rates
Because it stabilizes the market
Time significantly amplifies the effect of compound interest, as earnings are reinvested and generate more earnings. The longer money is allowed to compound, the greater the growth, which is a fundamental principle in investing.
How can understanding the relationship between risk and return influence your investment decisions?
It encourages investing in only high-risk options for quick returns
It helps in balancing the portfolio to achieve optimal returns while managing potential losses
It eliminates the need for diversification
It guarantees a fixed return on investment
Understanding how risk and return correlate allows you to make more informed investment choices by balancing potential gains with possible losses. This approach aids in constructing a portfolio that aligns with your risk tolerance and long-term goals.
Given an unexpected expense, what steps should you take to adjust your financial plan while preserving long-term goals?
Disregard long-term goals entirely to pay the expense
Reevaluate your budget, adjust discretionary spending, and consider tapping an emergency fund as a last resort
Apply for additional credit immediately
Increase spending in other areas to compensate
When faced with an unexpected expense, the best strategy is to revisit your budget and re-prioritize spending. Adjusting discretionary costs and, if necessary, using an emergency fund can help you manage the situation without derailing long-term financial objectives.
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Study Outcomes

  1. Understand and interpret key financial literacy concepts.
  2. Analyze budgeting strategies and their impact on personal finance.
  3. Apply principles of saving, investing, and credit management to real-world scenarios.
  4. Evaluate financial risks and the benefits of informed financial decision-making.

Everfi Truist Answers Quiz: Financing Ed Cheat Sheet

  1. Master Budgeting Like a Pro - Think of a budget as your personal money roadmap: it helps you decide what's essential versus what's extra so your bank account stays happy. By categorizing income and expenses, you'll spot sneaky spending leaks and build real financial confidence. Financial Literacy for High School Students | OppU
  2. Supercharge Your Saving Skills - Saving isn't just about stashing cash; it's about setting clear short‑ and long‑term goals that keep you motivated. With an emergency fund in place, unexpected car repairs or surprise bills won't send you into panic mode. Financial Literacy for High School Students | OppU
  3. Conquer Credit & Debt - Understanding credit scores and interest rates is like knowing the secret language of lenders - use it wisely, and doors open; misuse it, and they slam shut. Responsible borrowing builds trustworthiness, helping you score better loan terms in the future. Financial Literacy for High School Students | OppU
  4. Explore Bank Accounts - Checking accounts handle your daily spending adventures, while savings accounts help your money grow over time. Learning the perks and fees of each ensures you pick the perfect financial sidekick. Financial Literacy for High School Students | EverFi
  5. Jumpstart Investing Early - The magic of compound interest means even small contributions can snowball into serious wealth over decades. By exploring stocks, bonds, and funds today, you're laying golden bricks for tomorrow's financial castle. The Best Investment Tip: Start Young | FT.com
  6. Calculate Education ROI - Weigh tuition costs against future earning potential to pick the best academic path for your goals. A smart education investment pays dividends in career doors opened and salaries earned. Financial Literacy for High School Students | EverFi
  7. Insure Your Peace of Mind - Premiums, deductibles, coverage limits - these insurance ingredients protect you from financial storms when life throws curveballs. Knowing the right policy keeps your wallet sheltered from big surprises. Financial Literacy for High School Students | EverFi
  8. Become a Savvy Consumer - Before you click "buy," learn to compare quality, read reviews, and spot marketing tricks. Sharp consumer skills save you money and ensure you get the best value for your hard-earned cash. Financial Literacy for High School Students | EverFi
  9. Set & Smash Financial Goals - Clear goals transform wishful thinking into action plans with deadlines and milestones. Whether it's saving for a car or funding a trip abroad, goal setting fuels your money motivation. Financial Literacy for High School Students | OppU
  10. Beat Inflation Blues - Inflation quietly erodes buying power, so it's crucial to adjust your savings and investment strategies accordingly. Staying informed helps you ensure your money keeps pace with rising prices. Financial Literacy for Teens | Fidelity
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