Business 1-2 Sem. 1 Final Exam Review (Part 1)

Which account offers the least amount of interest (if any)?

• savings account

• checking account

• money market account

• certificate of deposit

Which financial institution has the highest fees?

• Brick-and-mortar bank

• Internet bank

• Credit union

• Check cashing and pay day loan company

Which account is best for everyday transactions?

• checking account

• savings account

• money market account

• certificate of deposit

Which account is best for setting aside money if you do NOT need access to the money for a number of years AND you want to earn the highest interest rate?

• Traditional savings account

• Online savings account

• Checking account

• Certificate of deposit

Which savings account will earn the most?

• One that compounds interest daily

• One that compounds interest monthly

• One that earns simple interest daily

• One that earns simple interest monthly

Which is considered saving rather than investing?

• Putting money in a savings account that earns interest

• Contributing to a 401(k) retirement plan

• Buying Treasury bonds

• Buying shares of stock

If your income is $2000 and your monthly costs include rent of $900, food of $250, and other costs totaling $900, what is the end result?

• End of month balance of $50

• Over budget by $50

• Total budget is $4050

• End of month balance of $0 (you broke even)

Which of the following budgets correctly follows the 50-30-20 Rule of Budgeting?

• Savings (50%), Needs (30%), Wants (20%)

• Needs (50%), Savings (30%), Wants (20%)

• Needs (50%), Wants (30%), Savings (20%)

• Wants (50%), Needs (30%), Savings (20%)

What is NOT a benefit of using a budget?

• Helps you prioritize your spending

• Helps you reach short- and long-term financial goals

• Helps you keep track of the money you receive

• Helps you purchase anything you want

Which of the following should you consider when setting a budget

• Your financial goals

• Needs and wants

• Savings

• All of the above