PF - Ch. 6 Review

___ involves an employer or financial institution placing your paycheck into a bank.

• Direct deposit

• Early withdrawal

• Automatic payroll

• Certificate of deposit

Interest drawn on the sum of the original principal PLUS interest is called ___ interest.

• Simple

• Compound

Money that is paid for the use of money is called ___.

• Principal

• Liquidity

• Risk

• Interest

The capability of financial resources being readily converted to cash is called ___.

• risk

• interest

• liquidity

• principal

The day on which a certificate must be renewed or cashed in is called the ___.

• early withdrawal

• maturity date

• direct deposit

• automatic payment

Which of the following items is the MOST liquid?

• automobile

• home

• regular savings account

• CD

A type of savings plan whereby you set aside money at a financial institution for a set period is a

• money market account

• CD

• regular savings account

• share draft account

Which of the following do banks usually offer?

• drive-up windows

• numerous locations

• ATMs

• All of these

Of the following, which pays the HIGHEST total interest when deposits are withdrawn at irregular times?

• compounded yearly

• compounded monthly

• compounded daily

• compounded quarterly

The amound of money that you deposit into the bank is known as ___.

• APY

• interest

• grant

• principal