Savings Tools Quiz

A depository institution account that is designed to hold money not spent on current consumption.

• Certificate of Deposit

• Checking Account

• Money Market Deposit Account

• Savings Account

An account at a depository institution that is used for a fixed period of time and allows restricted access to the funds deposited.

• Certificate of Deposit

• Checking Account

• Money Market Deposit Account

• Savings Account

An account at a depository institution that provides an easy method for withdrawing and depositing money.

• Certificate of Deposit

• Checking Account

• Money Market Deposit Account

• Savings Account

An account at a depository institution that usually has a minimum balance requirements and tiered interest rates.

• Certificate of Deposit

• Checking Account

• Money Market Deposit Account

• Savings Account

Interest rates are tiered on Money Market Deposit Accounts

• True

• False

The time length usually ranges from 7 days to 10 years in Checking Accounts.

• True

• False

Checking accounts are less liquid than savings accounts but earn higher interest rates.

• True

• False

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

Which option lists the savings tools in order from the HIGHEST interest rate to the LOWEST interest rate.

• 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

Michael recently graduated from college and accepted his first career position. He received a signing bonus of $1,000 for his new job. He plans to buy a new car in one year and has decided to save that money to use as a down payment on a new car. Which savings tool would be BEST for Michael to use?

• Checking Account

• Savings Account

• Money Market Deposit Account

• Certificate of Deposit