Saving (B10)

Saving money now can help you with which of the following?

• Prepare for unexpected emergencies

• Prepare for retirement

• Reach financial security

• All of these answers are correct.

Which factor should you consider before choosing a saving plan?

• fees

• liquidity

• safety

• All answers are correct.

Which account would yield the most interest if all other factors (APR, principal, etc.) were the same?

• an account that compounds annually

• an account that compounds biannually

• an account that compounds quarterly

• an account that compounds monthly

Which type of college funding needs to be repaid?

• scholarships

• grants

• loans

• work-study

Who insures deposits at commercial banks?

• FDIC

• NCUA

• IRS

• CIA

Who insures deposits at credit unions?

• FDIC

• NCUA

• IRS

• CIA

Which option has the highest liquidity?

• money market account

• savings account

• certificate of deposit

What does a brokerage firm do?

• buy and sell securities

• provide savings and checking accounts

• insure deposits at banks

• provide loans to businesses

If you buy stock in a corporation, which statement is true?

• You have loaned money to the corporation.

• You own part of the corporation.

• Both statements are true.

• Neither statement is true.

For something to be considered a short-term need, you should be able to save for it within what time frame?

• 1 year

• 5 years

• 10 years

• 20 years