Savings Test Review

Which of the following accounts will give you the LEAST access to your money?

• Savings account

• Certificate of Deposit (CD)

• Checking account

• Money Market Account (MMA)

A money market account is a type of savings account.

• True

• False

Which is NOT a typical goal for a savings account?

• To create an emergency fund

• To pay for higher education

• To save for a new car

• To buy groceries for this week

Tags

CCSS.3.OA.D.9

Open a CD only with money you won’t need immediately, because withdrawing money before the end of the term carries a penalty.

• True
• False

What is a good strategy to help you save?

• Pay expenses then deposit the rest into savings

• Dip into your savings on a regular basis

• Set aside money for savings each month

• Keep your spending and saving money together in one account

The FDIC insures a depositor's account  

• up to $100,000
• up to $250,000
• amount depends on your age
• amount depends on your marital status

Tags

CCSS.RI.11-12.3

CCSS.RI.11-12.5

CCSS.RI.8.5

CCSS.RI.9-10.3

CCSS.RI.9-10.5

Which savings tool gains the least amount of interest?

• IRA

• Savings

• CD

• Money Market

Compound interest is best defined as

• interest earned on the principal investment.

• Any form of interest earned from saving or investing.

• earning interest on interest.

• the effect interest has on the total return on investment.

Tags

CCSS.HSF-IF.C.8B

Planning for a major purchase, such as a car or a home, is a common reason for saving.

• True
• False

To earn as much interest as possible, you should open a savings account that earns _______interest and has the ______ interest rate.

• compound; lowest
• compound; highest
• simple; lowest
• simple; highest