Money Matters Chapter 5 Quiz - Savings

Which savings product requires a person to commit his or her money for the longest period of time?

• certificate of deposit (CD)

• interest-bearing savings account

• high-yield savings account

You must pay (a)   on the interest earned by your savings.

Which of the following strategies will help make your savings grow?

• Choose accounts with low interest rates.

• Make savings a regular part of your budget.

• Make frequent withdrawals.

Which is the best example of a SMART goal (financial)?

• I will save money for college

• I will take out $50 from each paycheck

• I will save $1,000 by June of this year

• I want to lose weight

The ease of converting an asset into cash without losing value is known as?

• interest

• cash flow

• conversion

• liquidity

_____ interest periods offer more flexibility for depositing and withdrawing money without loss of interest.

• Simple

• Shorter

• Longer

• Variable

You must pay (a)   on the interest earned by your savings.

The FDIC and NCUA insure deposits in financial institutions up to this amount

(a)  

Restrictions and penalties can affect an account’s (a)   .

Which of the following is necessary to use the Rule of 72?