Review Unit 2 Personal Finance

Front

Monthly means how many times a year?

Back

12

Front

Your 3 year investment of $20,000 received 5.2% interest compounded annually. What is your total return?

Back

$23,285.05

Front

Semi-Annually means how many times a year?

Back

2

Front

A savings certificate issued by a bank to a person depositing money for a specific length of time.

Back

Certificate of Deposit

Front

Bank accounts that people put money into, which they are able to access at any time.

Back

Savings Accounts

Front

Which of the following accounts would most likely pay the highest interest rate? A basic checking account, A basic savings account, A savings account with a $250 minimum balance, A $500 CD account with a term of 12 months.

Back

A $500 CD account with a term of 12 months.

Front

Which of the following accounts is it the easiest to take money out of the bank with? A basic checking account, A basic savings account, A savings account with a $250 minimum balance, A $500 CD account with a term of 12 months.

Back

A basic checking account

Front

What is an overdraft fee?

Back

A fee that you are charged when you use a debit card to buy something worth more than what you have in your account.

Front

What is the relationship between the interest rate an account pays you and the minimum balance it requires?

Back

The higher the minimum balance the higher the interest rate.

Front

Harry wants to save money in a bank account. He decides to open a _______________ account with a five-year maturity date because it offers a _________________ than a savings account does.

Back

CD; higher interest rate