Savings

The power of compound interest works BEST the longer an investment is allowed to grow

• True
• False

If your savings account rate is lower than the inflation rate -you will make money

• True
• False

You have a savings account with an average balance of $500, which bank has the better deal?

• Bank A with 10% annual interest rate and $5/month in fees
• Bank B with 2% annual interest rate and no fees
  
• They are the same
• Neither is a good choice

Experts recommend you save money in an "emergency fund." Which of these represents an expense where the emergency fund would be particularly useful?

• Monthly rent
• $150 speeding ticket
• Occasional fancy dinner or vacations
• Car insurance

Which one of these account types requires you keep your money deposited for a fixed amount of time?

• Money market account (MMA)

• Savings account

• Certificate of deposit (CD)

• Checking account

Liz is investing her money with a rate of 4%. How many years will it take her money to double?

• 10
• 18
• 15
• 24

The phrase "Not putting all your eggs in one basket" means to

• invest in the same stock.
• invest in dairy stock
• invest in livestock
• invest in different types of stock.

Which of the following is the most liquid asset?

• Stocks
• Savings Bonds
• Checking Account
• Certificate of Deposit (CD)

What is Bull market?

• Buying a bull online

• When everything goes up and people are buying.

• When prices are going down and nobody is buying.

• When people are selling false information.

What is capital gain?

• When you get a check from the capital.

• Profit off the sale of property or an investment.

• When you get a raise at work.

• When you lose money on a sale of an investment.