Personal Finance-Chapter 10-Savings

For use of the saver's money, the financial institution pays the saver money called principal.

• True
• False

A regular savings account pays much more interest than a certificate of deposit.

• True
• False

You may be charged a service fee if you make more than a maximum number of withdrawals from your regular savings account in one month or if your balance falls below a certain minimum.

• True
• False

Certificates of deposit are less liquid than regular savings accounts.

• True
• False

The law requires all financial institutions to tell consumers the annual percentage yield on their accounts.

• True
• False

Commercial banks offer only a few banking services and are not competitive.

• True
• False

Savings and loan associations usually offer full checking account services.

• True
• False

Liquidity is a major advantage to regular savings accounts.

• True
• False

Interest rates on money market accounts go up and down with the stock market.

• True
• False

Money market accounts are subject to early withdrawal penalties.

• True
• False