Savings Products Flashcard

Front

Which savings product requires a person to commit his or her money for the longest period of time? Options: certificate of deposit (CD), interest-bearing savings account, high-yield savings account

Back

certificate of deposit (CD)

Front

You must pay ________________ on the interest earned by your savings.

Back

taxes

Front

Which of the following strategies will help make your savings grow?
Choose accounts with low interest rates.
Make savings a regular part of your budget.
Make frequent withdrawals.

Back

Make savings a regular part of your budget.

Front

Which is the best example of a SMART goal (financial)? Options: I will save money for college, I will take out $50 from each paycheck, I will save $1,000 by June of this year, I want to lose weight

Back

I will save $1,000 by June of this year

Front

The ease of converting an asset into cash without losing value is known as?

Back

liquidity

Front

_____ interest periods offer more flexibility for depositing and withdrawing money without loss of interest.

Back

Shorter

Front

You must pay ________________ on the interest earned by your savings.

Back

taxes

Front

The FDIC and NCUA insure deposits in financial institutions up to this amount

Back

250000

Front

Restrictions and penalties can affect an account’s _____.

Back

earnings

Front

If George was looking to earn the most interest from opening a new savings account, which type of interest should he search for while shopping for the right bank?

Back

compound interest