Savings Account

Saving money's purpose is to aside for future use.

• Ture

• False

What do savings plans include?

• regular savings accounts

• certificates of deposit

• money market funds

• all of above

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

• 5%

• 10%

• 15%

• 20%

What are the reasons that people set up and maintain a savings plan?

• making major purchases

• providing for emergencies

• all of above

• planning for retirement

When we want to save the money, where should the money exist?

• a jar

• bank

• a piggy bank

• under a mattress

What is the biggest reason people should deposit money in the bank?

• they can earn interest on savings

• bank is safer than other places

• they just want to put the money in the bank

The rate of return is the percentage of increase in the value of your savings from earned interest.

• Ture

• False

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

• rate of return

• compound interest

• simple interest

• principal earnings

Which one is not a savings account？

• regular savings account

• certificates of deposit

• paper recording

• money market funds

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

• Lower

• Higher

• Same

• Does not earn interest