Personal Finance Ch 7-8 Banking

Money market accounts pay lower interest rates than regular savings accounts.

• true
• false

Financial institutions that offer memberships to people who share a common bond and are non-profit are called

• commercial banks
• savings and loans
• school
• credit unions

The more often interested is compounded, the more interest you earn.

• true
• false

Early withdrawal on a CD is usually subject to a(n)

• penalty
• increased interest payment
• note
• nothing

The money one has on deposit in a savings account, CD, or other savings vehicle is called 

• the amount
• the deposit
• the principal
• the interest

Interest that is paid on the principal and on any accumulated interest is called

• simple interest
• compound interest
• yearly interest
• complicated interest

The ease at which an asset can be turned into cash is called

• transformation
• diversification
• liquidity
• stock option

Interest can be compounded 

• all of these
• annually
• quarterly
• daily

How much is a bank account insured for by the FDIC?

• $250,000
• $350,000
• $200,000
• $350,000

Which of the following is the most liquid?

• Savings Account
• Checking Account 
• CD
• Savings Bond