Unit 3 Personal Finance Test

A stockbroker works for which type of financial institution?

• brokerage firm

• credit union

• savings and loan

• commercial bank

Government student loans

• never need to be paid back.

• usually do not require payments until after graduation.

• do not accrue interest.

• are not available for consolidation.

Which of the following is a short-term need?

• wedding

• home ownership

• retirement

• investment plans

You will receive the greatest gain on your principal if interest is compounded

• semiannually

• daily

• annually

• quarterly

Which of the following refers to money left over after you have paid bills?

• interest

• principal

• compound interest

• discretionary income

When a CD is cashed before its maturity date, the depositor must pay

• an early withdrawal penalty

• for another account to be opened

• extra interest

• more attention to the date

Which of the following items is the most liquid?

• regular savings

• certificate of deposit

• home

• automobile

You can authorize your employer to make automatic deductions from your paycheck each period with a(n)

• payroll savings plan

• direct deposit plan

• electronic funds transfer plan

• money market deposit account

Which of the following do banks usually offer?

• ATMs

• numerous locations

• drive-up windows

• all of these

A method to make regular savings easier is

• certificates of deposit

• automatic payroll deductions

• money market accounts

• savings accounts