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Module 1: Savings Flashcards | StudBud

Explore/Module 1: Savings

Module 1: Savings

6 terms·StudBud Administration·134 plays

review quiz for financial literacy modules

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Questions 6

Answers

1
Which type of account usually has high liquidity, low or no interest, and low minimum balance?
Investment Retirement Account (IRA)
Certificate of Deposit (CD)
Money Market Account
Checking Account
2
Which represents the typical relationship between required deposit time and interest rate?
Longer time period = higher interest rates
Shorter time period = higher interest rates.
Longer time periods = no effect on interest rates
Shorter time periods = no effect on interest rates
3
Which of the following savings vehicles usually requires a high minimum balance?
Checking account
Certificate of Deposit (CD)
Simple savings account
4
Which of the following is the MOST important consideration when planning your budget?
Budget for fixed expenses before flexible expenses
Budget for unexpected events in before expected expenses
Budget for expected events before unexpected expenses
Budget for your needs before your wants
5
Interest is:
the amount added to your savings when opening a bank account
the amount owed for borrowing money
a charge for lending money to a bank
a charge for accessing money stored in your bank account
6
To earn the most $, open an account that earns __ interest and has the ___ interest rate.
compound; highest
compound; lowest
simple; highest
simple; lowest