Banking Test

Front

Which of the following is a benefit of holding money in a CD for an emergency fund? Options: the money cannot be withdrawn without a penalty prior to maturity, the money could be earning a higher rate of return if it were invested more aggressively, the money is earning a higher rate of return than a savings account, there are no benefits in a CD for an emergency fund

Back

the money is earning a higher rate of return than a savings account

Front

Which type of savings accounts has high liquidity but a low interest rate? Options: CDs, Money Market Accounts, Regular Savings Account

Back

Regular Savings Account

Front

What type of savings account is the least liquid? Options: CDs, Money Market Accounts, Savings Accounts

Back

CDs

Front

Tre just got a part-time job, and his sister recommends he “pay himself first.” What is she talking about?

Back

Tre should set aside part of every paycheck for savings before he does any spending.

Front

Juan saved $1,000 from his summer job cleaning pools. Which of these savings vehicles would work best for him if he doesn't need access to the money for a number of years AND wanted to earn the highest interest rate? Regular savings account, Money Market account, Checking account, Certificate of Deposit

Back

Certificate of Deposit

Front

Jaden is saving for a car and hopes to purchase it in the next year. Which account would be the best recommendation? Options: Traditional Savings Account, Certificate of Deposit

Back

Traditional Savings Account

Front

When choosing a bank to put your money in make sure that it is Insured. This independent agency was created by the Congress to maintain stability and public confidence in the nation’s financial system. Which agency below is correct? FTC, FDIC, FIS, FOIA

Back

FDIC

Front

A bank account that allows you to deposit/withdraw money at any time and earns interest is a

Back

regular savings account

Front

The ability to quickly turn an investment into cash is called

Back

liquidity

Front

Which financial institution is insured by the NCUA? Options: Bank, Savings & Loan Association, Credit Union, Both A and B

Back

Credit Union