22-23 PrinB U6L3 Managing your Money

Which type of bank account allows you to withdraw money from the account on a frequent basis?

• Checking

• Savings

• Money market

• Certificate of deposit (CD)

What does a money market account offer that a certificate of deposit (CD) does not offer?

• You make more money in interest.

• You can withdraw money at any time.

• There is no difference between a money market account and a CD.

• You can open more than one money market account.

Which of the following is the best description of reconciling a bank account?

• Adding money to your bank account

• Comparing your own records to bank records

• Closing your bank account

• Comparing your bank account to your earnings

Why might a person choose to open a certificate of deposit (CD)?

• To make the highest profit possible

• To own shares in a corporation

• To earn interest over time without risk

• To have easy access to spending money

What is a stock?

• A share of ownership in a corporation

• The same thing as a bond

• A type of bank account

• A risk-free investment

Which of the following might issue a bond?

• An investment firm

• The IBM corporation

• A small business

• The state of Nebraska

Which of the following investment plans involves the greatest amount of risk?

• Investing in bonds

• Investing in individual stocks

• Investing in mutual funds

• Putting money in a money market account

You just got a job and plan to spend your earnings on clothes and entertainment. What kind of bank account would be best for you?

• Money market account

• Savings account

• Checking account

• Certificate of deposit (CD)

Why should you make a personal investment plan?

• To meet your personal financial goals

• To make the most money possible

• To keep your money as safe as possible

• To avoid financial risk

You are interested in investing your money, but don't know much about individual stocks or bonds. What kind of investment would be

best for you?

• Shares of Google or IBM

• Checking account

• Mutual fund

• U.S. Treasury Bonds