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1
Question
2
A)
Which of the following is
not
a step to creating a budget?
(1 point)
Determine Income
Track Your Expenses
Review and Adjust
Expand Earning Avenues
A)
Does a low interest rate encourage people to borrow or to save? Explain.
(1 point)
A low interest rate encourages people to save because interest rates are paid to savers by
borrowers, so a low interest rate means a low opportunity cost for saving.
A low interest rate encourages people to save because interest rates are paid to borrowers by
savers, so a low interest rate means a low opportunity cost for saving.
A low interest rate encourages people to borrow because interest rates are paid to borrowers by
savers, so a low interest rate means a low opportunity cost for borrowing.
A low interest rate encourages people to borrow because interest rates are paid to savers by
borrowers, so a low interest rate means a low opportunity cost for borrowing.
Question
3
Question
4
A)
Tamika has $2,000 she wants to save. She has two options:
She could save at a bank for 3 years with a fixed simple interest rate of 9%.
She could save at a credit union for 3 years with an 8.8% fixed interest rate compoundedannually.
Which answer correctly compares the total return Tamika would receive with the simple interestfrom the bank and the compounded interest from the credit union?
(1 point)
After 3 years, Tamika would receive $540 in simple interest from the bank or $575.83 in compound
interest from the credit union.
After 3 years, Tamika would receive $540 in interest from both the bank and the credit union.
After 3 years, Tamika would receive $180 in simple interest from the bank or $584.84 in compound
interest from the credit union.
After 3 years, Tamika would receive $584.84 in interest from both the bank and the credit union.
A)
What is a direct deposit?
(1 point)
An electronic transfer of funds directly between bank accounts
A welcome bonus banks offer when you open a checking account
A deposit of cash into a bank account
The amount the bank charges a checking account holder each month
Question
5
A)
When do checking account holders pay an overdraft fee?
(1 point)
When they make a payment that exceeds their available balance
When their available balance drops below $25
When they move money from a checking account to a savings account
When they make the first withdrawal from their account

1 answer

Answers:

Question 1 A) Which of the following is not a step to creating a budget?
Answer: Expand Earning Avenues

Question 2 A) Does a low interest rate encourage people to borrow or to save? Explain.
Answer: A low interest rate encourages people to borrow because interest rates are paid to savers by borrowers, so a low interest rate means a low opportunity cost for borrowing.

Question 3 A) Tamika has $2,000 she wants to save. She has two options:

  • She could save at a bank for 3 years with a fixed simple interest rate of 9%.
  • She could save at a credit union for 3 years with an 8.8% fixed interest rate compounded annually.
    Which answer correctly compares the total return Tamika would receive with the simple interest from the bank and the compounded interest from the credit union?
    Answer: After 3 years, Tamika would receive $540 in simple interest from the bank or $575.83 in compound interest from the credit union.

Question 4 A) What is a direct deposit?
Answer: An electronic transfer of funds directly between bank accounts

Question 5 A) When do checking account holders pay an overdraft fee?
Answer: When they make a payment that exceeds their available balance

Feel free to ask if you have more questions or need further explanations!