Financial LIteracy

The starting amount for savings account is _____________.

• High

• Low

The statement below is related to investment account except :

• Money cannot be withdrawn from the account at any time

• Starting amount is depends on the type of investment

• Profit in the form of interest between 1% to 2% per annum

• Profit in the form of dividends with rates usually more than 2% per annum

The starting amount for investment account depends on the type of investment.

• True

• False

Money can be withdrawn from the account at any time is the definition of ____________ account.

• Saving

• Investment

• Credit

• Debt

Credit purchases characteristics include :

• In debt

• Interest is imposed

• No interest

• Pay more than the original price

• Payment via credit card and monthly installment

____________ purchases advantages are :

1) Not in debt

2) No interest

3) Pay for the original price

4) Payment fully in cash or debit card

A loan that a person has to pay to a bank or financial institution.

• Credit

• Investment

• Savings

• Debt

A convenience to postpone payment of the purchased goods.

Compound interest is

• a loan needed to be paid by someone

• an interest received from the saving and interest collected each year

• the money kept and used when necessary

• an interest received for the first year of saving only

If saving is withdrawn, the value of interest will __________ .

• Increase

• Decrease

• Remain the same