FINAL: Savings Tools

Front

In relation to the other options, how liquid is a savings account?

Back

More liquid than a Certificate of Deposit

Front

Which of the following is a feature of a certificate of deposit (CD)? Options: Funds deposited in a CD are held for a certain length of time., Funds deposited in a CD have tiered interest rates., Funds deposited in a CD are very liquid., Funds deposited in a CD can be accessed via check or debit card.

Back

Funds deposited in a CD are held for a certain length of time.

Front

Which account is the least liquid? Options: Checking Account, Savings Account, Money Market Deposit Account, Certificate of Deposit

Back

Certificate of Deposit

Front

Savings accounts are considered high risk!

Back

False

Front

Quality of an asset that permits it to be converted quickly into cash?

Back

Liquidity

Front

Micah is a high school senior who works part‐time earning $500 per month. He is responsible for paying several of his own expenses including entertainment, automobile insurance and eating out. He needs a flexible account which allows him easy access to his money. Which savings tool would you recommend Glenn utilize and why?

Back

Checking Account because he needs access to his funds often.

Front

Checking accounts are less liquid than savings accounts but earn higher interest rates. True or False?

Back

False

Front

Which option lists the savings tools in order from the MOST liquid to the LEAST liquid: Money market, savings account, checking account, certificate of deposit; Checking, savings, money market, certificate of deposit; Certificate of deposit, money market, savings, checking; Checking, certificate of deposit, money market, savings?

Back

Checking, savings, money market, certificate of deposit

Front

Define liquidity.

Back

How quickly and easily an asset can be converted into cash.

Front

How much should a person save in order to be financially secure?

Back

Six months of expenses