A certificate of deposit (CD) is ...

Savings account that requires a deposit of fixed amount for fixed time.

What is simple interest?

Interest paid on the original amount deposited.

Compound interest is ...

Earning interest on principal plus interest already earned.

What is a money market account (MMA)?

Savings account that pays higher interest rates than regular savings acct.

What is compound interest?

Earning interest on the principal plus the interest already earned.

Money paid for the use of money.

The rule of 72 is ...

Equation that estimates how long to double money at annual interest rate.

A savings account is ...

A bank account used to accumulate money for future use.

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Financial Literacy Chapter 5 Vocabulary

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Questions 13

Answers

1
A regular savings account is a bank account used to accumulate money for future use.
True
False
2
A certificate of deposit (CD) is ...
Savings account that requires a deposit of fixed amount for fixed time.
Saving account that pays interest and allows deposits and withdrawals.
Money paid for the use of money.
Bank account used to accumulate money for future use.
3
What is simple interest?
Earning interest on the original amount plus the interest earned.
Rate of yearly earnings from an account.
Original amount deposited
Interest paid on the original amount deposited.
4
Principal is ...
Money paid for the use of money.
Idea money decreases over time if not earning interest.
Original amount deposited.
Plan for using money to reach financial goals.
5
Compound interest is ...
Interest in purchasing a compound.
Interest paid on original amount deposited.
Earning interest on principal plus interest already earned.
Savings account that pays higher interest than regular savings accounts.
6
A savings plan is a bank account used to accumulate money for future use.
False
True
7
Time value of money is the idea the value of money decreases if it doesn't earn interest.
True
False
8
What is a money market account (MMA)?
Savings account that requires a deposit of a fixed amount for a fixed time.
Savings account to accumulate money for future use.
Savings account that pays higher interest rates than regular savings acct.
Savings account that pays interest and allows deposits and withdrawals.
9
What is compound interest?
Earning interest on the principal plus the interest already earned.
Bank account used to accumulate money for future use.
Money paid for the use of money.
Interest paid on the original amount deposited.
10
APY stands for annual percentage yield.
True
False
11
What is interest?
Bank account used to accumulate money
Money paid for the use of money.
Rate of yearly earnings from an account.
Interest paid on the original amount deposited.
12
The rule of 72 is ...
You have 72 hours after a financed purchase to back out.
Equation that estimates how long to double money at annual interest rate.
Idea that value of money decreases if not earning interest.
After money is deposited for over 72 years, it belongs to the bank.
13
A savings account is ...
Savings account that pays higher interest than regular savings accounts.
Bank account used for paying bills with checks.
Plan for using money to reach financial goals and increase security.
A bank account used to accumulate money for future use.

Financial Literacy Chapter 5 Vocabulary Flashcards | StudBud