MP4 Business Practicum Review

What are the two main types of bank accounts?

• Savings and certificates of deposit

• CD's and mutual funds

• Checking and Savings

• Checking and Direct Deposit

What type of account has the most accessibility to your funds?

• CD's

• Checking Account

• Savings Account

• Money Market Account

What type of account pays the highest interest rate?

• CD's

• Checking Account

• Savings Account

• Money Market Account

_______ is the original sum of money invested or lent.

Which of the following is NOT an example of investing:

• Giving your cousin $5,000 to help start his business, in exchange for 5% of the profits.

• Putting $20 per paycheck into an account to help pay for books during college.

• Contributing 3% of your paycheck to a 401(k)-plan offered through your job.

• Buying shares of stock in your favorite clothing company.

Which of the following is not a true financial benefit of going to college.

• A worker with a Masters degree will earn at least $2.7 million.

• A worker with a Bachelors degree will earn at least $2.3 million.

• A worker with an Associates degree will earn over $1.2 million.

• A worker with a high school diploma will not earn more than $500,000.

Which of the following is a secured loan?

• Credit Card

• Your parents lending you money to buy a car

• Mortgage

• None of the above

A secured loan is ________.

Which of the following is not an installment loan?

• Home mortgage

• Auto loan

• Student loan

• Credit Card

Why might someone consider choosing a loan with the lowest monthly payment?

• Low payments fit better in their monthly budget.

• Low payments indicate a low interest rate.

• Low payments eventually lead to lower total interest paid.

• Low payments help you pay off your loan more quickly.