Review game - 2.03

An account that pays interest on a specific sum of money that a person has deposited for a specific period of time. If withdrawn before that time,the bank imposes a penalty fee.

• Savings Account
• Certificate of Deposit (CD)
• Checking Account
• Money Market Account

Interest paid periodically and paid on the principal plus interest earned.

• Simple Interest
• Compound Interest
• Hard Interest
• Double Interest

The percentage rate that is used when calculating the interest (money) paid on a savings, money market, or investment account.

• Rule of 72
• Interest rate
• Simple Interest
• Rate of Return

Act of purchasing assets (stocks, bonds, property) with expectation that they will increase in value over time.

• Withdrawing
• Depositing
• Time Value of Money
• Investing

Retirement account that allows investors to make tax-deductible contributions. Individuals are responsible for setting up and managing the account.

• 401K
• IRA
• 403B
• Social Security

A type of bank account where the bank invests the money in government and corporate securities in order to pay a higher interest rate than a regular savings account. You typically have to have a large minimum balance in order to have such an account.

• Savings Account
• Money market account
• Checking Account
• CD

A plan in which an employer guarantees a certain sum of money to the employee based on the number of years of service upon retirement.

• 401K
• Defined Contribution Plan
• Pension
• IRA

The phrase "Not putting all your eggs in one basket" means to

• invest in the same stock.
• invest in dairy stock
• invest in livestock
• invest in different types of stock.

A low risk investment offered by the government that has the most predictable income.

• Certificate of Deposit (CD)
• U.S. Savings Bond
• Money market account
• Corporate Bonds

Which of the following is the most liquid asset?

• Stocks
• Savings Bonds
• Checking Account
• Certificate of Deposit (CD)