Chapter 2 - Review questions #1

What is it called when money is transferred automatically to a persons checking or savings accout.

• Savings

• Interest

• Direct Deposit

• Borrowing

The cost of borrowing money from a bank is called _______

• Checking

• Interest

• investing

The interest rate for every person that wants to borrow money is the same.

• True

• False

The interest rate for borrowing money is always _______ than the interest rate a person earns in a savings account.

• Higher

• Lower

With direct deposits, a person has access to their money faster than if they received a paper check.

• True

• False

Direct deposits are a safe and convenient way to get paid.

• True

• False

Keeping your money in cash at home will allow you to earn interest.

• True

• False

Keeping you money in the bank will allow you to earn interest.

• True

• False

Simple interest and compound interest are the same thing.

• True

• False

People's money will grow more with simple interest than compound interest.

• True

• False