Chapter 5 Quiz

Rather than waiting until all bills are paid and placing the leftover into savings, you should do this instead.

• Pay yourself first.

• Find a second job so that you have even more money to save.

• Get a roommate to split the bills with so you aren't paying as much.

• Pay bills with a credit card and save the money that you earned from work.

A program that makes regular deductions from your paycheck to automatically go into savings is called a __________________?

• Tax break

• Payroll Savings Plan

• Garnishment

• Federal Withholding

Money set aside for situation that are unexpected so that you are not put into a bad situation.

• Rainy day fund

• 401K

• Emergency Fund

• High yield savings account

The S in SMART Goal stands for _____________________?

• Special

• Specific

• Savings

• Spending

An account that is designed for accumulating money for future use.

• Checking account

• Financial account

• Long-term account

• Savings account

When your interest is compounded you are ___________________?

• Getting a higher interest rate on your account

• Receiving a dividend

• Making interest on your interest

• Paying a lower fee on the account

What is the name of organizations that insures your money in your account is protected in case the bank goes out of business?

• IRS

• FED

• FDIC

• FBI

A high-yield savings account means the bank _________________.

• Offers a higher interest rate

• Charges lower-fees

• Automatically limits your withdrawals

Which of these typically pays you the least amount of interest?

• Checking account

• Money market fund

• Certificate of deposit

• High-yield checking account

A certificate of deposit (CD) offers competitive interest rates, but you must do what with your in order to receive the interest?

• Withdraw the funds early

• Pay higher fees

• Leave your money in the CD for a fixed period of time (term)