Savings and Investing Review # 1

Most Americans have an emergency fund and money saved for retirement

• True
• False

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

• True
• False

A savings account should be used for daily purchases

• True
• False

A speeding ticket is an item that you would use money from an emergency fund for

• True
• False

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

With compound interest what increases year after year

• Nothing
• The Interest rate
• The principal amount getting the interest rate
• Both the interest rate and principal amount
  

A 401k plan is a(n)

• emergency fund

• retirement plan

• checking account

• loan

What is a 401K plan

• something sponsored by my mom
• Long terms savings plan not sponsored by employer
• Long term savings Plan sponsored by employers
• sponsored by the government

Who offers you a 401k?

• Your employer
• Your mom

Which of the below is an employer based retirement plan that only employers contribute to?

• Traditional IRA

• Roth IRA

• 401K

• Pension