Banking Unit Test (Test #)

Front

Juan saved $1,000 from his summer job cleaning pools. Which account type would work best for him if he doesn't need access to the money for years and wants to earn the highest interest rate? Options: Regular savings account, Money Market account, Checking account, Certificate of Deposit

Back

Certificate of Deposit

Front

What is an effective strategy for personal saving?

Back

Save a certain percentage of each paycheck and deposit it directly into a savings account

Front

Joelle wants to have an emergency fund to cover 6 months of her expenses. Her monthly gross pay is $4,000 and her monthly expenses are $2,000. If she plans to save 10% of her gross pay each month, how long will it take her to build her emergency fund?

Back

30 months

Front

Which statement about bank accounts is NOT true?

Back

Historically, savings accounts earn higher returns than investments in the stock market.

Front

What is NOT true about prepaid cards?

Back

Prepaid cards are a great way to build credit

Front

Arrange the following savings goals from short-term to long-term: A new cell phone, college tuition, a house down payment.

Back

A new cell phone, college tuition, a house down payment

Front

50-30-20 rule of budgeting: 50% of income toward ____, 30% toward ____, 20% toward ____.

Back

Needs, wants, savings

Front

Which represents the BEST time to start saving for your retirement?

Back

As soon as you have your first full-time job

Front

Which of the following statements is TRUE?

Back

The majority of Americans do NOT have an adequate emergency fund or sufficient amounts of money saved for retirement

Front

Experts recommend that you accumulate enough to cover 3 to 6 __________________ of expenses in your emergency fund. Options: Days, Weeks, Months, Years

Back

Months