Savings Accounts

A bank account that allows you to deposit/withdraw money at any time and earns interest is a

• money market fund

• money market deposit account

• regular savings account

• certificate of deposit

The ability to quickly turn an investment into cash is called

• liquidity

• rate of return

• inflation risk

• interest

What is the date when money deposited into a Certificate of Deposit (CD) becomes available called?

• maturity date

• liquidity

• rate of return

• savings

Tags

CCSS.HSG.C.B.5

Savings is important to the economy because why?

• It means people are earning a lot of money

• It generates loan money for people and businesses

• Banks should have a lot of money in their vault

• It means people are not spending

How much of your take-home pay should you try to save?

• 5%

• 10%

• 15%

• 20%

Interest earned on both the principal and any interest earned on the principal.

• Rate of return

• Compound interest

• Simple interest

• Principal earnings

The interest rate on a CD is __________ than that on a regular savings account.

• Lower

• Higher

• Same

• Does not earn interest

If you cash in a CD before the maturity date you will __________ and __________. (select 2)

• pay a penalty

• pay the interest

• lose interest

• lose the principal

You earn _______________ by saving money in a savings account.

• money

• interest

• awards

• trophies

Tags

CCSS.7.RP.A.3

Interest calculated on the amount of money deposited ONLY.

• Daily

• Simple

• Compound

• Annual

Tags

CCSS.7.RP.A.3