6.2 Review - Finance

Front

Among the savings options, regular savings accounts usually pay the highest interest but offer the lowest liquidity and safety. ​
Options: True, False

Back

False

Front

CDs have a set maturity date and are less liquid, but they pay a higher rate of return than regular savings accounts.​

Back

True

Front

__________ pay more interest when economic conditions are good (and growing).​

Back

Money market accounts

Front

Most financial institutions offer safety of principal through insurance programs offered by government agencies, such as the FDIC or NCUA.​

Back

True

Front

All of the following are ways to make regular saving easier except: opening several credit accounts, direct deposit, payroll savings plans, automatic deductions, saving spare change and cash

Back

opening several credit accounts

Front

______ means that you are guaranteed not to lose your savings deposit, even if the bank fails and goes out of business.

Back

Safety of Principal

Front

A(n) ________ is a type of mutual fund that invests in low-risk securities and is considered safe even though it is not FDIC insured.

Back

money market fund