CHAPTER 5 SAVINGS QUIZ

Money is considered to be a(n)

• need and want

• limited resource

• opportunity cost

• none of these

Money set aside for unplanned events is a(n)

• 401K

• emergency fund

• checking account

• none of these

Your savings goals should have

• beginning points

• ending points

• fixed time periods

• all of these

Interest rates are expressed in _______ terms

• monthly

• weekly

• yearly

• semiannually

To earn top dollar on your savings, you should look for

• highest APY

• frequent compounding of interest

• short interest periods

• all of these

A passbook is used to record

• deposits

• loan payments

• insurance checks

• none of these

When purchasing a(n) ______, you are lending money to the federal government.

• certificate of deposit

• US savings bond

• FDIC insurance

• money market account

Something you want to achieve stated in terms that are specific, measurable, achievable, realistic, and time related

• SMART goals

• to have goals

• long term goals

• to do goals

The _____ requires financial institutions to provide clear information about the costs and terms of interest-earning accounts in uniform terms.

• EE bond

• Truth in Savings Act

• Consumer Price Index

• FDIC

Interest earned only on the principal, which is the amount of money originally deposited.

• simple interest

• time value of money

• compound interest

• APY