Unit 2 Savings

What is the term for the amount earned from depositing money in an interest-bearing account?

• Principal

• Interest

• Maintenance Fee

• Minimum Balance

Which of the following is a government agency that insures customer deposits up to $250,000?

• Health Savings Account (HSA)

• Federal Deposit Insurance Corporation (FDIC)

• Money Market Savings Account

• Emergency Fund

What is the original amount of money saved or invested called?

• Interest

• Principal

• Inflation

• Cost-Push Inflation

Which type of account allows for pre-tax savings for out-of-pocket health care expenses?

• Money Market Savings Account

• Health Savings Account (HSA)

• Emergency Fund

• Minimum Balance

What is the term for buying goods without planning due to a sudden whim or urge?

• Impulse Buying

• Cost-Push Inflation

• Rule Of 72

• 50-20-30 Rule

What is the 50-20-30 Rule in personal finance?

• 50% savings, 20% debt, 30% necessities

• 50% necessities, 20% saving/debt, 30% flexible spending

• 50% flexible spending, 20% necessities, 30% saving/debt

• 50% debt, 20% savings, 30% necessities

What is the term for inflation caused by increased production costs?

• Inflation

• Cost-Push Inflation

• Rule Of 72

• Emergency Fund

What is the rate at which goods' prices increase and purchasing power decreases called?

• Interest

• Inflation

• Principal

• Minimum Balance

What is the Rule of 72 used for?

• Calculating the interest rate needed to double money

• Finding the years to double money based on interest rate

• Determining the minimum balance required in an account

• Estimating the maintenance fee for an account

What is an emergency fund?

• Money set aside for planned expenses

• Money set aside for unanticipated expenses or loss of income

• Money used for impulse buying

• Money invested in a money market savings account