Savings Tools

In relation to the other options, how liquid is a savings account?

• More liquid than cash
• Less liquid than mutual funds
• More liquid than a Certificate of Deposit
• More liquid than a checking account

Hannah needs a savings tool to help her manage her everyday purchases. The savings tool needs to be very liquid and accessible. Which of the following savings tools should Hannah choose?

• Certificate of deposit
• Checking account
• Money market deposit account
• Any of the above savings tools would help Hannah

Which of the following is a feature of a certificate of deposit (CD)?

•  Funds deposited in a CD are held for a certain length of time.
• Funds deposited in a CD have tiered interest rates.
•  Funds deposited in a CD are very liquid.
• Funds deposited in a CD can be accessed via check or debit card.

9.  Which of the following is a feature of a money market deposit account?

• No minimum balance requirements
• Unlimited transactions every month
• Tiered interest rates
• The money must remain in the account for a specific period of time

Which account is effective for storing emergency money?

• Checking Account
• Savings Account
• Money Market Deposit Account
• Certificate of Deposit

Which account is the least  liquid?

• Checking Account
• Savings Account
• Money Market Deposit Account
• Certificate of Deposit

Which account is also known as a share account at a credit union?

• Checking Account
• Savings Account
• Money Market Deposit Account
• Certificate of Deposit

Which account is also known as a share draft account?

• Checking Account
• Savings Account
• Money Market Deposit Account
• Certificate of Deposit

Savings accounts are considered high risk!

• True
• False

Quality of an asset that permits it to be converted quickly into cash ? 

• Liquidity 
• Share