WISE money

A bank Certificate of Deposit is a:

• Savings instrument that requires a deposit for a period of time during which the saver can withdraw money from the plan at any time without a penalty
• Savings instrument that requires a deposit for a period of time during which there is a penalty for withdrawals
• Cash deposit in a savings account that earns interest
• Certificate for deposits that are issued for half the face value

Money set aside to grow is typically called:

• a budget
• discretionary income
• net income
• savings or investments

Lamar believes that interest rates are going to fall in the near future and remain low for a considerable period of time. She should invest in:

• Nothing, she should put her money under her mattress
• A variable rate certificate of deposit
• A long-term, fixed rate certificate of deposit
• A short-term, fixed rate certificate of deposit

Purchases made with your debit card are usually:

• Answer A   Deducted immediately from your checking account
• Answer B   Deducted from your credit card balance
• Answer C   Added to your credit card balance  
• Answer D   Put on your credit card bill as a cash advance

Troy has $50 a month transferred electronically from his checking account to his savings account. This is an example of:

• An installment payment
• A savings plan
• An ATM transaction
• A debit card transaction

When James received his paycheck, he planned to cash it at a check cashing store.  You advise him to cash it at his own bank if possible. Why?

• They typically require a two day waiting period before giving cash
• They typically charge high fees
• There is likely to be a ceiling on the size of the check he can cash
• They generally require a co-signor

A bank Certificate of Deposit is a:

• Savings instrument that requires a deposit for a period of time during which the saver can withdraw money from the plan at any time without a penalty
• Savings instrument that requires a deposit for a period of time during which there is a penalty for withdrawals
• Cash deposit in a savings account that earns interest
• Certificate for deposits that are issued for half the face value

Pat has a savings account and a car loan from a not-for-profit financial institution owned by its members.  She is probably a member of what type of financial institution?

• Credit union
• Commercial bank
• Savings and loan association
• Investment club

Which financial product has the most predictable income?

• Stock
• Real Estate
• Certificate of deposit
• Options/Future Contract

The best suggestion you gave a friend who is writing a check for the first time is:

• Date the check because it is usually proof of payment
• Use pencil to permit changes
• Make the check payable to cash
• Use the checkbook stub or register to keep a record of the date you write the check