Investment Basics

_____ is an account that generates interest income on the available balance in the amount

• Interest-Bearing Account 
• The Five Foundations 
• Sinking Fund 
• Inflation

The five steps to financial success

• Interest rate
• Emergency fund
• The five foundations
• Compound interest

A savings account that is set aside to be used only for emergency expenses

• Emergency fund
• Inflation 
• Compound interest 
• Interest rate

Interest paid on interest previously earned 

• Inflation
• Interest rate
• Compound interest
• Sinking fund 

Saving money over time for a large purchase

• Interest rate 
• The five foundations 
• interest-bearing account 
• Sinking fund 

A rate which is either charged (on debt) or paid (on investment accounts) for the use of money

• Interest rate 
• Sinking fund 
• Compound interest 
• Emergency fund 

The persistent increase in the cost of goods and services or the persistent decline in the purchasing power of money

• Sinking fund 
• Compound interest
• Inflation
• Interest-bearing account 

When it comes to saving money, the amount you save is determined by how much you have left at the end of the month once all of your spending is done. 

• True 
• False 

Your income level greatly affects your saving habits. 

• True 
• False 

At your age, a fully funded emergency fun should be: 

• $1,000
• $5,000 
• $100
• $500