Chapter 6 : True or False

Cash allowances awared to students to go to college, called scholarships, may be based on need or on high test scores.

True

Compound interest refers to interest paid on principal and interest.

True

Emergencies, vacations, social events, and major purchases are examples of short-term needs.

True

Financial institutions can offer interes compounded in many ways, including daily, quarterly, and yearly.

True

If a depositor withdraws part or all of a certificate of deposit before its maturity date, there may be an early withdrawal penalty.

True

Some ways to make saving easier include direct deposit and automatic deductions.

True

When choosing a savings account, you should consider safety, liquidity, convenience, potential yield, and fees.

True

A subsidized student loan has higher interest rates, and interest begins the day you receive a loan.

False

Deposits in savings and loan associations and commercial banks, but not credit unions, are insured.

False

Work-study programs will replace your need fo other sources of money for college funding.

False