Life Skills Saving and Investing

If you save $7 thids week at 5% interest, in 10 years you will have $4743.04.

• true

• false

Which of the following are types of savings accounts?

• Flexible Savings Account

• Passbook Account

• Statement Account

• Interest-earning Checking Account

Money Market Deposit Account-What are they and how are they used?

• Checking/savings account

• Interest rate paid built on a complex structure that varies with size of balance and current    level of market interest rates.

• Commodities

• Can access your money from an ATM, a teller, and can write up to three checks a month.

What is a benefit of a money market savings account?

• Immediate access to your money.

• Win at the lottery.

• Writing as many checks as you want each month.

What are the benefits of CDs?

• No risk

• Simple

• No feeS

• Higher interest rates than regular savings accounts

Simple interest is the same as interest compounded yearly.

• false

• true

The Truth in Savings Act requires financial institutions to disclose the following information:

• Fees on deposit accounts

• The interest rate

• The annual percent yield

• Other terms and conditions

What are the three types of bonds?

• Cooperate

• Manicipal

• Federal Government

What are mutual funds?

• Professional managed portfolios made up of stocks, bonds, and other mutual funds.

• Term savings accounts

• Shared checking accounts

What are stocks?

• Ownership of a corporation

• Stockholders own a share of the company

• Stockholder are entitled to share of the profits and vote on how company is run

• Stockholders can write as many checks as they need