Savings and Investment

One of the best ways to determine what's really important to you and where you want to focus your time and effort is to

• Talk about your new ideas to friends

• Publish your own blog

• Ask a favorite teacher

• Write down your goals and update your list over time

Which three terms mean: a decrease in purchasing power of the dollar; to increase in value; the opposite of liability

• Inflation, Interest, Insurance

• Deflation, Depreciation, Debt

• Inflation, Appreciation, Asset

• Allowance, Accrual, Asset

A Certificate of Deposit (CD) is a type of:

• Insurance

• Savings Account

• Checking Account

• Monthly Statement

Which three items are benefits of online banking?

• Can check status of transactions any time; automatic transfers can help you save; cuts down paper waste

• Improves computer skills; helps you spend more efficiently; allows you to customize your checks

• Can help your balance at any time; improves your credit rating; automatic transfers can help you track transactions

• Eliminate the need for overdraft protection; increases the interest you earn; actually irons your shirts

The basic idea of reconciling your accounts each month is to compare two things. Which two?

• Account balance and checks

• Worksheet and bills

• Account statement and transaction register

• Worksheet and receipts

One of the best ways to avoid fraud is:

• Never buy online

• Change your identity and social security number

• Immediately destroy your receipts

• Monitor your financial activity carefully on a regular basis

The amount of interest you earn on money in your savings account will depend a lot on which three factors?

• The wind chill factor, the alignment of the stars and planets, and whether Mercury is in retrograde.

• The interest rate, how often you make deposits, and how often the financial institution invests your money.

• The interest rate, how often you make deposits, and how the financial institution pays the interest.

• The prime rate, your credit rating, and how you make the deposits (cash, check, or direct deposit).

The collection of investments you own is called your:

• Portfolio

• Dividend

• Profit Margin

• Liabilities

Many studies indicate that if you want your retirement savings to last, you should withdraw no more than of your savings each year than

• 1-2%

• 4-6%

• 8-10%

• 10% of your age

To build wealth, try to focus on buying assets you think are likely to ____________________ over time.

• depreciate

• negotiate

• appreciate

• initiate