5.02 Savings Tools Note Taking Guide

Which is the most liquid?

• Checking Account
• Savings Account
• Money Market Deposit Account
• Certificate of Deposit

Which is designed to hold money not spent on current consumption?

• Checking Account
• Savings Account
• Money Market Deposit Account
• Certificate of Deposit

Which often has tiered interest rates –the amount of interest earned depends on the account balance?

• Checking Account
• Savings Account
• Money Market Deposit Account
• Certificate of Deposit

Which account is used for a fixed period of time and allows restricted access to the funds?

• Checking Account

• Savings Account

• Money Market Deposit Account

• Certificate of Deposit

Which account is the least  liquid?

• Checking Account
• Savings Account
• Money Market Deposit Account
• Certificate of Deposit

Which account is effective for storing emergency funds?

• Checking Account

• Savings Account

• Money Market Deposit Account

• Certificate of Deposit

Which account must be held for a certain length of time (usually a couple of years)?

• Checking Account

• Savings Account

• Money Market Deposit Account

• Certificate of Deposit

Which account do you usually have to deposit a minimum amount to open the account (typically $1,000)?

• Checking Account

• Savings Account

• Money Market Deposit Account

• Certificate of Deposit

Which account is more liquid than other savings tools (except checking accounts)?

• Checking Account

• Savings Account

• Money Market Deposit Account

• Certificate of Deposit

Which account earns interest but rates are often low?

• Checking Account
• Savings Account
• Money Market Deposit Account
• Certificate of Deposit