# Pf2015 Quiz 1: Investing, Saving, Budgeting

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A review of savings and budgeting concepts for Eastside Prep Personal Finance course. Good luck!

• 1.

### Your friend tells you that she can double her money in a savings account in 24 years.  Based on Rule of 72, what do you estimate to be the interest rate on her savings account?

• A.

1.5%

• B.

2%

• C.

3%

• D.

6%

C. 3%
Explanation
Based on the Rule of 72, the interest rate is estimated by dividing 72 by the number of years it takes for the money to double. In this case, it takes 24 years for the money to double, so 72 divided by 24 equals 3%. Therefore, the estimated interest rate on her savings account is 3%.

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• 2.

### Isaiah works for the summer at a technology company and has a salary for the summer of \$3,000.  After federal and state taxes and Social Security/Medicare taxes are deducted, his take-home pay is \$2,500.  Which of the statements below is CORRECT?

• A.

His gross pay is \$2,500 and net pay is \$3,000

• B.

His gross pay is \$3,000 and net pay is \$2,500

• C.

His gross and net pay are \$3,000

• D.

His net pay and gross pay are \$2,500

B. His gross pay is \$3,000 and net pay is \$2,500
Explanation
The question states that Isaiah's salary for the summer is \$3,000. After taxes are deducted, his take-home pay is \$2,500. Gross pay refers to the total amount of money earned before any deductions, so his gross pay is \$3,000. Net pay refers to the amount of money received after deductions, so his net pay is \$2,500. Therefore, the statement "His gross pay is \$3,000 and net pay is \$2,500" is correct.

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• 3.

### When banks provide information about savings accounts, they typically quote the interest rates they offer (e.g. 1%) on a...

• A.

Per day basis

• B.

Per month basis

• C.

Per six month basis

• D.

Per year basis

D. Per year basis
Explanation
Banks typically quote interest rates on a per year basis when providing information about savings accounts. This means that the interest rate is applied to the account balance over the course of a year. It allows customers to easily compare different savings accounts and understand the annual return they can expect on their savings. By quoting the interest rate on a per year basis, banks provide a standardized measure that helps individuals make informed decisions about their savings.

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• 4.

### Banks are required to provide a Truth in Savings Disclosure to all new savings account holders.  This disclosure includes information about the fees the bank charges on their savings accounts.

• A.

False

• B.

True

B. True
Explanation
Banks are indeed required to provide a Truth in Savings Disclosure to all new savings account holders, which includes information about the fees they charge on their savings accounts. This is done to ensure transparency and provide customers with all the necessary information about the terms and conditions of their savings account.

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• 5.

### If you deposit \$200 into a savings account with an interest rate of 1% for 3 years, how much simple interest can you brag that you will earn after THREE years?WebRep currentVote  noRatingnoWeight

• A.

\$3

• B.

\$5

• C.

\$6

• D.

\$60

C. \$6
Explanation
The formula to calculate simple interest is: Interest = Principal (P) x Rate (R) x Time (T). In this case, the principal is \$200, the rate is 1% (or 0.01), and the time is 3 years. Plugging these values into the formula, we get: Interest = \$200 x 0.01 x 3 = \$6. Therefore, after three years, you can brag that you will earn \$6 in simple interest.

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• 6.

### A student completing their college education (with a bachelor's degree) at a four-year college can expect to earn how much more over a typical forty year career than a student with just a high school degree?   WebRep currentVote  noRatingnoWeight

• A.

\$50,000

• B.

\$250,000

• C.

\$900,000

• D.

\$5,000,000

C. \$900,000
Explanation
A student completing their college education at a four-year college can expect to earn \$900,000 more over a typical forty-year career than a student with just a high school degree. This is because higher education provides individuals with specialized knowledge and skills that are in demand in the job market, leading to higher-paying job opportunities. Additionally, college graduates are more likely to be promoted to higher positions and have better job stability, which further contributes to their increased earning potential over time.

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• 7.

### What is earned interest?WebRep currentVote  noRatingnoWeight

• A.

When prices increase as time goes by

• B.

The money you pay as a fee when you use a debit card

• C.

The money that a bank pays you for depositing your money in their bank

• D.

Total amount of money in a bank

C. The money that a bank pays you for depositing your money in their bank
Explanation
Earned interest refers to the money that a bank pays you for depositing your money in their bank. When you deposit money in a bank, the bank uses that money for various purposes such as lending to other customers. In return for allowing the bank to use your money, they pay you interest on your deposit. This interest is considered as earned interest because it is the money that you earn by keeping your money in the bank.

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• 8.

### Which of these savings vehicles would work best today if you don't need to access the money for a number of years AND wanted the highest interest rate possible? WebRep currentVote  noRatingnoWeight

• A.

Money Market Savings Account

• B.

Certificate of Deposit (CD)

• C.

Simple Savings Account

• D.

None of the options listed

B. Certificate of Deposit (CD)
Explanation
A Certificate of Deposit (CD) would work best in this situation because it offers a higher interest rate compared to a Money Market Savings Account or a Simple Savings Account. Additionally, with a CD, the money is locked in for a specific period of time, typically ranging from a few months to several years, which aligns with the requirement of not needing to access the money for a number of years. Therefore, a CD would provide the highest interest rate possible while also ensuring that the money remains untouched for the desired period of time.

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• 9.

### Based on the rule of 72, a savings account earning 6% per year would allow you to double your money after...WebRep currentVote  noRatingnoWeight

• A.

6 years

• B.

8 years

• C.

12 years

• D.

18 years

C. 12 years
Explanation
The rule of 72 is a quick and simple way to estimate how long it takes for an investment to double in value. By dividing 72 by the annual interest rate, you can determine the approximate number of years it will take for the investment to double. In this case, dividing 72 by 6% gives us 12, indicating that it would take approximately 12 years for the money to double in a savings account earning 6% per year. Therefore, the correct answer is 12 years.

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• 10.

### What would be the BALANCE of your savings account after THREE months if the savings account had an ANNUAL interest rate of 6% and you started with principal of \$500?

• A.

\$30

• B.

\$15

• C.

\$507.50

• D.

\$530.00

C. \$507.50
Explanation
After three months, the balance of the savings account would be \$507.50. This can be calculated by using the formula for compound interest: A = P(1 + r/n)^(nt), where A is the final amount, P is the principal, r is the annual interest rate, n is the number of times interest is compounded per year, and t is the time in years. In this case, the principal is \$500, the annual interest rate is 6%, the interest is compounded annually (n = 1), and the time is three months (t = 3/12 = 0.25 years). Plugging these values into the formula, we get A = 500(1 + 0.06/1)^(1*0.25) = \$507.50.

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• 11.

### When putting together your personal budget, you find that your budget is in deficit.  Indicate the actions that you need to take to balance your budget.

• A.

Increase your income and expenses by the same amount

• B.

Cut your expenses by an amount greater than your deficit

• C.

Increase your expenses by an amount greater than your deficit

• D.

Increase the spending on your wants

B. Cut your expenses by an amount greater than your deficit
Explanation
To balance your budget, you need to cut your expenses by an amount greater than your deficit. This means reducing your spending on non-essential items or finding ways to save money on necessary expenses. By doing so, you can decrease your deficit and bring your budget back into balance. Increasing your income and expenses by the same amount or increasing your expenses by an amount greater than your deficit would only worsen the deficit. Additionally, increasing spending on wants would also contribute to a larger deficit.

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• 12.

### You are considering opening a savings account and are considering these two options:Bank A is in NOT in FDIC program, has interest rate of 5%, minimum deposit of \$25 and fees that are competitive to other banks.  Bank B is in the FDIC program, has interest rate of 0.01%, minimum deposit of \$50 and competitive fees.  If you had to choose one of the two banks, which would you choose?

• A.

Bank A

• B.

Bank B

• C.

Bank A and Bank B are the same

B. Bank B
Explanation
Bank B would be the preferred choice because it is in the FDIC program. The FDIC program provides insurance for deposits in case the bank fails, up to \$250,000 per depositor. This means that if Bank B were to fail, the depositor's money would still be protected. Additionally, although Bank B has a lower interest rate of 0.01% compared to Bank A's 5%, the difference in interest earnings is likely to be negligible given the low rates. Therefore, the added security of the FDIC program makes Bank B the better option.

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• 13.

### What was the MOST important lesson of the Bank Manager role play, when a volunteer came to the front of the class to discuss opening a savings account with Bill?WebRep currentVote  noRatingnoWeight

• A.

Savings accounts have low interest rates today

• B.

Bank managers are usually straightforward in describing their savings products

• C.

When pressured to sign an application to open an account (or buy a financial product), it is best to ask for time to review the materials and to walk away.

• D.

It is best not to ask questions but to just let the bank manager describe their savings products.

C. When pressured to sign an application to open an account (or buy a financial product), it is best to ask for time to review the materials and to walk away.
Explanation
The most important lesson of the Bank Manager role play is that when pressured to sign an application to open an account or buy a financial product, it is best to ask for time to review the materials and to walk away. This implies that it is important to take the time to carefully consider any financial decision and not to be swayed by pressure or urgency. It is crucial to thoroughly understand the terms and conditions before committing to any financial product.

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• 14.

### Which of the statements below would be considered good advice for creating a budget (SELECT ALL ANSWERS THAT ARE CORRECT)?WebRep currentVote  noRatingnoWeight

• A.

Set aside money for Savings FIRST

• B.

Be sure that your WANTS are met first before you set aside money for your NEEDS.

• C.

Keep your expenses less than your income so that your budget will be in surplus.

• D.

Be sure to compare your budget plan with your actual spending so that you can determine if you are staying within your budget.

• E.

Only consider what to save after your wants and needs have been taken care of first.

A. Set aside money for Savings FIRST
C. Keep your expenses less than your income so that your budget will be in surplus.
D. Be sure to compare your budget plan with your actual spending so that you can determine if you are staying within your budget.
Explanation
The correct answer suggests three good pieces of advice for creating a budget. First, it recommends setting aside money for savings first, which is a common practice to ensure that you prioritize saving for future needs. Second, it suggests keeping your expenses less than your income to have a surplus in your budget, which helps in building savings and avoiding debt. Lastly, it advises comparing your budget plan with your actual spending to track if you are staying within your budget and make necessary adjustments. These recommendations promote financial discipline and responsible budgeting.

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• 15.

### True or False.  When looking at which college majors earned the highest starting salaries in 2013, it is clear that students who had technical skills gained from STEM majors (Science, Technology, Engineering and Math) had most of the positions in the "top 10 list."WebRep currentVote  noRatingnoWeight

• A.

True

• B.

False

A. True
Explanation
The statement is suggesting that students with technical skills gained from STEM majors had most of the positions in the top 10 list of college majors with the highest starting salaries in 2013. The correct answer is True, indicating that this statement is accurate. It implies that STEM majors tend to lead to higher starting salaries compared to other majors.

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• 16.

### You purchase one share of Wal-Mart stock on January 1, 2014 for \$100.00.  You decide to sell the stock on March 1, 2014 when the stock price was \$97.00.  The return on your Wal-Mart investment is:WebRep currentVote  noRatingnoWeight

• A.

+3.0%

• B.

-3.0%

• C.

-4.0%

• D.

+4.0%

• E.

+8.0%

B. -3.0%
Explanation
The return on your Wal-Mart investment is -3.0%. This is calculated by finding the percentage change in the stock price from the purchase date to the selling date. The stock price decreased from \$100.00 to \$97.00, which is a decrease of \$3.00. To find the percentage change, divide the decrease by the original price and multiply by 100. In this case, (\$3.00 / \$100.00) * 100 = -3.0%. This negative percentage indicates a loss on the investment.

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• 17.

### You are putting together your first budget after graduating from college.  Your take-home or net pay from your job will be \$2,500 per month.  You estimate your monthly costs to be rent of \$800, car payment of \$350, car insurance of \$150, car maintenance of \$50, entertainment of \$500, food expense of \$250, mobile phone of \$100, cable bill of \$75, personal car expenses of \$100 and other expense of \$300.  How would you describe your budget after analyzing all of your income and expenses? WebRep currentVote  noRatingnoWeight

• A.

You have a surplus of \$175

• B.

You have a deficit of \$175

• C.

You have a balanced budget

• D.

You have a deficit of \$2,675

• E.

You have a surplus of \$2,500

B. You have a deficit of \$175
Explanation
After analyzing all of your income and expenses, it is evident that your expenses exceed your income. This means that you have a deficit of \$175 in your budget.

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• 18.

### You are considering your investment options.  Your choices are to buy stock in Facebook, Google, Nike, McDonalds or the S&P500 Index Fund.  Which investment will provide you with a diversified investment and therefore lower your risk?  WebRep currentVote  noRatingnoWeight

• A.

• B.

• C.

Nike

• D.

McDonalds

• E.

S&P500 Index Fund

E. S&P500 Index Fund
Explanation
The S&P500 Index Fund is the correct answer because it is a fund that tracks the performance of the S&P500, which is a stock market index that includes 500 of the largest publicly traded companies in the United States. By investing in this fund, you are effectively investing in a diverse portfolio of companies from different sectors, which helps to lower your investment risk compared to investing in a single company like Facebook, Google, Nike, or McDonalds.

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• 19.

### You put \$500 in a savings account with an interest rate of 10% per year (not a realistic rate in today's world).  Assuming that the bank offers you the benefit of compound interest, what would the BALANCE in your account be after 2 years?WebRep currentVote  noRatingnoWeight

• A.

Less than \$600

• B.

More than \$600

• C.

Exactly \$600

• D.

\$550

• E.

\$100

B. More than \$600
Explanation
With compound interest, the interest earned is added to the initial amount, and then interest is calculated on the new total. After 2 years, the initial amount of \$500 would have grown by 10% each year. The balance in the account after 2 years would be more than \$600.

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• 20.

### When comparing investment choices, which statements below are TRUE (SELECT ALL THAT ARE TRUE)?WebRep currentVote  noRatingnoWeight

• A.

Investing in the stock market carries NO risk of losing money.

• B.

Over the long term, the stock market has averaged returns of 8-9% per year.

• C.

When it comes to investing, past performance of an investment is NO guarantee of how the stock will perform in the future.

• D.

Over the past 50-60 years, savings accounts have provided higher returns than investing in the stock market.

• E.

According to Warren Buffett, it is easy to find stocks that will perform better than the S&P500

B. Over the long term, the stock market has averaged returns of 8-9% per year.
C. When it comes to investing, past performance of an investment is NO guarantee of how the stock will perform in the future.
Explanation
The statement "Over the long term, the stock market has averaged returns of 8-9% per year" is true because historical data shows that, on average, the stock market has provided annual returns in that range. However, it is important to note that these returns are not guaranteed and can vary significantly in different time periods. The statement "When it comes to investing, past performance of an investment is NO guarantee of how the stock will perform in the future" is also true because the stock market is influenced by various factors and future performance cannot be predicted solely based on past performance.

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• 21.

### You have \$25 to open a savings account.   You are most interested in having easy access to your money and finding an account type that has low minimum balance requirements.  You are less interested in earning a high interest rate.  What type of account would you choose?WebRep currentVote  noRatingnoWeight

• A.

Money Market account

• B.

Regular savings account

• C.

Certificate of Deposit

• D.

Stock index fund like the S&P500 Fund

B. Regular savings account
Explanation
A regular savings account would be the best choice in this scenario because it offers easy access to the money and usually has low minimum balance requirements. While it may not provide a high interest rate, the main priority for the individual is having easy access to their funds and not necessarily earning a high return on investment.

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• 22.

### You open a new bank account at Eastside Savings and see the FDIC stickers all around the bank branch.  You also go to the FDIC website to double check and see that the Eastside Savings branch you bank at is on the FDIC's list also.  Your savings balance is \$500.  You hear on the radio that Eastside Savings is having trouble and may close down.  What would happen if Eastside Savings failed?WebRep currentVote  noRatingnoWeight

• A.

You would lose all your money.

• B.

You could lose \$250 since FDIC insurance only covers 50% of the money you have deposited.

• C.

You would receive all the money you have deposited at Eastside Savings since FDIC insurance covers accounts up to \$250,000.

• D.

You would receive \$250,000 since FDIC insurance provides each account at the bank with \$250,000 regardless of how much they have deposited.

C. You would receive all the money you have deposited at Eastside Savings since FDIC insurance covers accounts up to \$250,000.
Explanation
If Eastside Savings were to fail, the FDIC insurance would cover all the money that the account holder has deposited at the bank, up to \$250,000. This means that even if the savings balance is \$500, the account holder would still receive the full amount they have deposited, as it falls within the coverage limit provided by the FDIC.

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• 23.

### InvestmentPurchase PriceCurrent PriceReturn (%age)Apple\$94.00\$100.00?????McDonalds\$73.00\$65.00????Google\$500.00\$515.00????You have three stocks that you bought earlier this year.  You are looking at their current prices and curious as to how the stocks have performed relative to each other.  You are using their percentage return as your measurement tool.  Rank order the stocks from HIGHEST return to LOWEST return.  Remember to calculate the percentage return for each stock to arrive at your answer.  WebRep currentVote  noRatingnoWeight

• A.

• B.

• C.

• D.

• E.

They all have the same percentage returns.

B. Apple, Google, McDonalds
Explanation
The correct answer is Apple, Google, McDonalds. This is because Apple has the highest return percentage, followed by Google, and then McDonalds. The percentage return is calculated by subtracting the purchase price from the current price, dividing that by the purchase price, and then multiplying by 100 to get the percentage. By comparing the percentage returns of each stock, we can determine their performance relative to each other.

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• 24.

### You received \$5 in company stock on the first day of class.  At the end of the summer session, you decide you want to sell your stock.  When you calculate the percentage return, you are excited to see that the price for your company stock increased by 10.0%.  How much money will you receive from me in exchange for handing in your stock certificate?  WebRep currentVote  noRatingnoWeight

• A.

\$0.50

• B.

\$1.00

• C.

\$5.00

• D.

\$5.50

• E.

\$11.00

D. \$5.50
Explanation
Since the price of the company stock increased by 10.0%, you would receive 10.0% of the initial value of the stock as profit. Therefore, you would receive \$0.50 as profit, and when added to the initial value of \$5.00, you would receive a total of \$5.50 in exchange for handing in your stock certificate.

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• 25.

### You have a meeting with a bank manager to open a savings account and he says you can only ask one question of him.  For the sake of this question, assume that his answer to your question is truthful.  What would you ask?WebRep currentVote  noRatingnoWeight

• A.

What is the interest I would earn with your regular savings account?

• B.

What are the fees on your regular savings account?

• C.

Is your bank FDIC insured?

• D.

Is it true that I get a toaster oven if I open a new savings account his month?

C. Is your bank FDIC insured?
Explanation
The question "Is your bank FDIC insured?" is the most important question to ask because it ensures the safety of your funds. The Federal Deposit Insurance Corporation (FDIC) is a government agency that provides insurance coverage for deposits in banks. If a bank is FDIC insured, it means that your deposits are protected up to a certain amount in case the bank fails. Therefore, asking this question is crucial to ensure the security of your savings.

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• 26.

### Analyze the chart below.  Select ALL the statements below that are true. AnalyzeWebRep currentVote  noRatingnoWeight

• A.

You can expect to earn more money if you have an Associates degree (2 years) as compared to a Bachelor's degree (4 years).

• B.

Excluding Doctoral degrees, as you increase your level of education you increase your potential earnings and reduce your risk of being unemployed.

• C.

If you go to college but don't earn a degree on average you still earn as much as a student with a bachelor's degree (degree from a four-year college).

• D.

When looking at median weekly earnings, those with a bachelor's degree earn about \$412 more per week than a high school graduate.

B. Excluding Doctoral degrees, as you increase your level of education you increase your potential earnings and reduce your risk of being unemployed.
D. When looking at median weekly earnings, those with a bachelor's degree earn about \$412 more per week than a high school graduate.
Explanation
As you increase your level of education, you increase your potential earnings and reduce your risk of being unemployed. This means that having a higher level of education, such as an Associates degree or a Bachelor's degree, can lead to higher earning potential compared to having just a high school diploma. Additionally, when looking at median weekly earnings, individuals with a bachelor's degree earn about \$412 more per week than those with just a high school diploma.

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• 27.

### Which of the following are important criteria when selecting a savings account? (CHECK ALL THAT APPLY)WebRep currentVote  noRatingnoWeight

• A.

FDIC insurance

• B.

Quality of their commercials

• C.

Interest rate earned

• D.

Minimum deposit

• E.

Fees

A. FDIC insurance
C. Interest rate earned
D. Minimum deposit
E. Fees
Explanation
When selecting a savings account, it is important to consider several criteria. The FDIC insurance is crucial as it ensures that the funds deposited in the account are protected in case the bank fails. The interest rate earned is also important as it determines the growth of the savings over time. The minimum deposit is a criterion to consider because it indicates the amount of money required to open the account. Lastly, fees are important to take into account as they can affect the overall profitability of the account.

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• 28.

### Your goal is to open a regular savings account.  You have done your research and completed the table below.  Which bank would you select if you had a minimum to deposit of \$200? FactorsBank ABank BBank CFDIC insuredYesYesYesInterest rate earned1%1.2%0.5%Monthly fees\$2\$5\$0Minimum deposit\$50\$100\$125Hint:  Do the math to determine how much interest you would earn annually for each bank and compare that to the fees that each bank will charge. Remember to convert monthly fees into annual fees!WebRep currentVote  noRatingnoWeight

• A.

Bank A

• B.

Bank B

• C.

Bank C

C. Bank C
Explanation
Bank C would be the best choice because it is FDIC insured, has the highest interest rate of 0.5% and does not charge any monthly fees. The minimum deposit of \$125 is also within the budget of \$200. Therefore, Bank C offers the highest potential for earning interest and has the lowest fees, making it the most suitable option for opening a regular savings account.

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• 29.

### Your friend tells you that she wants to set up an emergency savings fund so that she has six months of expenses saved.  This will provide her with peace of mind that she can deal with any personal emergencies that life can throw her way.  She tells you she has budgeted expenses of \$30,000 per year.  She earns \$50,000 per year and plans to save 10% per yearHow long will it take for her to build up her emergency savings fund?  WebRep currentVote  noRatingnoWeight

• A.

1 year

• B.

2 years

• C.

3 years

• D.

4 years

C. 3 years
Explanation
Based on the information provided, your friend plans to save 10% of her \$50,000 annual income, which amounts to \$5,000 per year. Since she wants to save six months of expenses, which is \$15,000 (\$30,000 / 2), it will take her three years to accumulate this amount by saving \$5,000 per year.

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• 30.

### After starting your first job, you remember that summer bridge class and how Bill and Tim encouraged you to start saving for retirement.  You find out that your company has a great 401K matching plan.  You are earning \$50,000 per year and decide to put 10% of your earnings into the 401k plan or \$5,000 per year.  The company puts in an additional \$2,500 into your 401k plan so your annual additions are \$7,500.  Here are the assumptions to use:Your Current Principal is 0Assume that you continue to put the same amount of \$7,500 per year (based on \$5,000 from you and \$2,500 from the company) for 40 years.  You make investments in stock index funds and earn 5% per year over that period.  How much would you estimate you would have in retirement savings at the end of that 40 year period?WebRep currentVote  noRatingnoWeight

• A.

\$7,500

• B.

\$200,000

• C.

• D.

Almost \$1,000,000

D. Almost \$1,000,000
Explanation
Based on the given information, the individual is contributing \$7,500 per year into their 401k plan for 40 years. Assuming a 5% annual return on investment, the individual's retirement savings would grow significantly over time. By compounding their contributions and returns, the estimated amount at the end of the 40-year period would be almost \$1,000,000.

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• 31.

### Read this passage about savings trends in the United States: "If you don't have emergency savings, what do you do when you have an unplanned expense or the money runs out before the bills do?" McBride says. "You're stuck.That means for some people (turning to) high-cost borrowing, check cashing, a payday lender."Another obstacle blocking our road to financial security: Americans' proclivity for buying stuff, McBride says."I've had people stand in front of me with a \$5 latte and a \$500 iPad and say they couldn't possibly save more than they are now," McBride says.It takes discipline, he says. And some are choosing to live more simply in order to stay ahead. Jeremy Roberts, 30, says he and his wife Charity decided to start living "off much less than we make," as they realized how slowly the economy was recovering.Which of the statements below is the key theme of this passage?  WebRep currentVote  noRatingnoWeight

• A.

People who don't have emergency savings often pay high interest rates to borrow money

• B.

It is better to buy things that are considered "wants" rather than save since saving is hard.

• C.

Since it is easy to control and predict our spending habits, it is OK not to have emergency savings.

• D.

Spending more than you earn is a good strategy to build up savings.

A. People who don't have emergency savings often pay high interest rates to borrow money
Explanation
The passage discusses the consequences faced by individuals who do not have emergency savings. It states that when faced with unplanned expenses or running out of money before paying bills, these individuals often turn to high-cost borrowing options such as payday lenders or check cashing services. This suggests that people without emergency savings often have to pay high interest rates to borrow money, making the statement "People who don't have emergency savings often pay high interest rates to borrow money" the key theme of the passage.

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• Mar 21, 2023
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• Jun 23, 2015
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