Finance basics
The FDIC protects up to _______________ per person per bank in each account category.
$250,000
Which of theses savings options would you expect to have the highest interest rate/
10 year CD
Doug invested $2,500 into a certificate of deposit earning 6.5% interest. How long will it take to double Doug's investment?
11 years
A stock is:
A share of ownership in a company
Historically, savings accounts earn higher returns than money market accounts. True or False:
False
__________________ refers to how easy it is to access your money.
Liquidity
Which financial institution(s) usually provide access to online banking options?
Retail Bank, Credit Union, Online Bank
Which of these investment types is highest in risk?
Stock
Accounts with high liquidity tend to have low interest rates and low minimum balance. True or False:
True
Saving for Retirement is an example of a long term goal. True or False:
True
Saving for a new cell phone is an example of a short term goal? True or False
True
You can write checks from a money market account. True or False:
True
Which of the following is a way to access money from your checking account?
Using your debit card to pay for groceries.
Which of the following conditions will maximize the amount of interest you earn?
a high interest rate & long time period.
Which of the following is NOT a common feature of a financial institution? a: direct deposit b: access to investment products c: access to ATMs d: paper check
access to investment products
Which account will give you the LEAST access to your money?
certificate of deposit
Which of the following savings vehicles usually requires a high minimum balance?
certificate of deposit
Which of the following is a type of savings vehicle?
certificate of deposit/ money market account
This account can be a good option if you make frequent transactions.
checking account
To earn as much interest as possible, you should open a savings account that earns _______ interest.
compound
Which compounding frequency will earn you the most money?
compounding daily
The purpose of a budget is to:
help you plan how you will spend the money you earn or receive
To earn as much interest as possible you should open a savings account with a ________ interest rate.
high
When you use your debit card where does the money for the purchase come from?
it is deducted directly from your checking account.
The best way to ensure the accuracy and safety of your accounts is to:
monitor your online accounts regularly.
Experts recommend you accumulate enough to cover 3 to 6 ____________ of expenses in your emergency fund.
months
What is interest?
the amount owed for borrowing money.
When would you need to use the rule of 72?
to find out how long it will take your money to double.