Consumer Education -- Chapter 8
If interest at 6% is compounded annually on Carlos' $500 savings account what would the amount be at the end of two years assuming he didn't withdraw any money?
$561.80
This specializes in lending to consumers that want to buy homes.
Savings and loan associations
Interest paid annually at the end of the year on the average balance in a savings account is...
Simple interest
If you deposit $200 in an account that pays 6 percent interest per year, what would our balance be by the end of the first year?
$212
Savings accounts are offered by any savings institution, a pace in which you can deposit money, and...
A way you can earn interest
A written promise to pay a debt by a specified date is called a...
Bond
Interest that is paid on the principal and also on previously earned interest, assuming that the interest is left n the account is called...
Compound interest
Financial institutions that offer memberships to people who share a common bond, such as people in a particular profession, company, or labor union are...
Credit unions
Authorizing your employer to deposit a certain amount of each paychecik into your savings is called an automatic pay roll...
Deduction
T or F -- A credit union is a financial institution that serves individuals and businesses wit a wide variety of accounts, loans, and other financial services.
F
T or F -- A dividend is not actually a share of a company's profits.
F
T or F -- The higher the rate of interest, the less income your deposit will earn.
F
T or F -- The more often interest is compounded, the less interest you make.
F
The dollar value printed on a bond is the...
Face value of the bond
Early withdrawal on a CD is usually subject to a...
Fee
Money in saving accounts usually earns...
Interest
The money you deposit in a saving account, CD, or other saving option is called the...
Principle
Interest can be compounded annually, semiannually, and...
Quarterly
T or F -- A good way to save successfully is to make saving a regular payment from each paycheck.
T
T or F -- Almost all deposits are insured by a federal government agency.
T
T or F -- Many compound interest calculators are available on the internet.
T
T or F -- Money market accounts usually pay higher interest rates than regular savings accounts.
T
T or F -- Simple interest is earned on just your principal, not on the interest earned previously.
T
T or F -- When you save, you trade spending now for the ability to spend in the future.
T
