Ways to Save & Invest

One pro of basic savings accounts is ...

• the interest rate is higher than a money market account.

• there are no or low minimum balance requirements.

• there is a limit of three transactions a month.

• the ability to write an unlimited number of checks.

This chart represents interest rates for?

• Checking account

• Certificate of Deposit

• Savings account

• Money Market account

Where can you choose to place or invest your money?

• Commercial banks

• Credit Unions

• Bonds

• Mutual Funds

• ALL of the above

What is the relationship between risk and return when it comes to investing?

• Typically inverse

• Typically parallel

• There is no relationship

• Return is always greater than risk

Depositors in banks and credit unions have the protection of which government agency?

• FDA

• FTC

• FDIC

• FICA

Safe investments run the risk of not being able to keep up with _____.

• deflation

• unemployment

• mutual funds

• inflation

These financial institutions are an attractive choice for some because they offer low or no fees, allow for all the typical banking services, and are member-based.

• credit unions

• commercial banks

• investment agencies

• federal reserve banks

Which type of account allows a select number of checks to be written, typically requires a higher minimum balance, and yields higher interest on the whole?

• Traditional savings

• Money market

• Bonds

• Certificate of Deposit (CD)

What dollar amount of deposit insurance is covered by the FDIC?

• $100,000

• $150,000

• $200,000

• $250,000

What is one disadvantage to big commercial banks?

• Many banking services offered

• Higher fees

• Low minimum balances

• Access to ATMs