Saving & Retirement

In general, a deposit of up to ________ in a bank account is guaranteed against loss.

• $100,000

• $250,000

• $500,000

• $750,000

The Federal Reserve stimulates the economy or slows it down by ________.

• controlling the market rate of interest

• manipulating the stock market

• offering a discount rate to individual borrowers

• manipulating the money supply

Which of the following is the speed with which you can convert an asset to cash without significant loss of value?

• Liquidity

• Interest

• Principal

• Annuity

Banks use depositors' money to make money through interest charged on loans.

• True

• False

Interest rates tend to move up or down along with rates controlled by the Federal Reserve, such as the discount rate.

• True

• False

Shiva deposited $1,500 in a savings account that pays 2.76 percent in annual interest. If Shiva does not make any withdrawals or deposits, how much interest will Shiva's account earn by the end of one year?

• 414

• $41.40

• 1541.4

• 4140

The most liquid type of bank account is a ________ account.

• savings

• NOW

• money market deposit

• basic checking

The money put into a(n) ________ account is referred to as a demand deposit.

• money market

• IRA

• certificate of deposit

• checking

Which of the following typically pays a higher rate of interest than a NOW account but a lower rate of interest than a certificate of deposit?

• )An individual retirement account

• A savings account

• A basic checking account

• A money market deposit account

Which of the following is NOT a common CD maturity?

• Two weeks

• One month

• Six months

• Three years