Personal Financial Literacy Review (Econ)

Multiple Choice

A group that channels savings to investors; including banks, insurance companies, savings and loan associations, credit unions

• The World Health Organization

• Financial Institutions

• The Federal Reserve (The Fed)

• The Internal Revenue Service (IRS)

Multiple Select

When you turned sixteen, you started working an after-school job and earn regular paychecks. You plan to use the money you earn from this job to buy a used car, but your wage is not high enough to save enough by the target date.

Which of the following methods do you think is the best way to put your money to work for you?

• Keep all of your money in a shoebox in your closet. Promise yourself that you won't spend any money on other things until you reach your goal.

• Put your money in a savings account. It'll earn some interest and you can withdraw what you need at any point.

• Place your earnings in a certificate of deposit (CD) account. It'll raise higher interest, but you will be limited in the flexibility of withdrawing funds.

• Re-invest the money you've been earning in a lawnmower (or something similar) so you can start your own business.