Unit 7B TEST

What is the primary purpose of a savings account?

• To spend money freely

• To save money for future use

• To make unlimited transactions

• To avoid paying taxes

Which savings option typically earns the most interest?

• Checking account

• Certificate of Deposit (CD)

• Regular savings account

• Piggy bank

What does “interest” refer to in a savings account?

• A fee for using the bank

• Extra money earned on your savings

• A penalty for withdrawing money

• The amount of money you deposit

Which of the following is NOT considered an investment?

• Stocks

• Bonds

• Savings account

• Lottery tickets

What is the main advantage of investing in a 401(k) retirement plan?

• Guaranteed returns every year

• Your employer may match your contributions

• You can withdraw money anytime without penalties

• It has no tax benefits

Which investment has the highest potential risk?

• Savings account

• Certificate of Deposit (CD)

• Stock market investments

• Government bonds

Which type of investment is considered the safest?

• Stocks

• Bonds

• Mutual funds

What must you always include on a check?

• Your Social Security number

• Your bank account balance

• The date, payee, and amount

• A phone number

If you make a mistake when writing a check, what should you do?

• Cross it out and rewrite the correct information

• Tear up the check and start a new one

• Give it to the bank anyway

• Erase the mistake

What does "NSF" stand for when referring to a check?

• No Savings Funds

• Not Sufficient Funds

• Non-Service Fee

• National Security Fund