Unit 2 REVIEW

Using emergency savings for your car payment is a good idea.

The interest rate on your savings account will stay the same as long as you have it.

Which of the of the following would be considered the most liquid of investments?

The US administration insuring deposits in the US against Credit Union failure.

An automatic deposit of net pay to an employee's designated bank account.

If I am saving money would I want simple interest or compounded interest?

Money earned before taxes and deductions are taken out.

If a bank says their savings earns 3% interest, over what time prd will you earn that interest?

What is principal?

Typically, savings accnts earn higher returns on invstmnts than invstmnts in the stock market.

What is a Certificate of Deposit or a CD?

If I am getting compound interest on my savings, which would be the best scenario?

Which is a good strategy for personal savings?

If a bank pays 8% interest and is not FDIC insured, is it still a good idea to bank there?

The rate charged for borrowing money usually expressed as a % of the amount borrowed

To open a savings account, which is not needed?

When talking about finance, what is yield?

What is the purpose of the Rule of 72?

Way to save for the future by putting $ aside before paying regular monthly bills.

How much money will FDIC insure?

Which is an example of a short term goal?

What is the formula for simple interest?