Savings Personal Finance

Defined contribution retirement account that is taken out of your paycheck before you pay any taxes on this income.

• IRA
• Roth IRA
• 401K
• Pension

An account that pays interest on a specific sum of money that a person has deposited for a specific period of time. If withdrawn before that time,the bank imposes a penalty fee.

• Savings Account
• Certificate of Deposit (CD)
• Checking Account
• Money Market Account

Interest paid periodically and paid on the principal plus interest earned.

• Simple Interest
• Compound Interest
• Hard Interest
• Double Interest

Spreading your money among different savings and investments is known as?

• Saving and Investing

• Money Management

• Diversification

• Spreading your wealth

Kyle isn't willing to take risk with his money as he sets money aside to use when he buys a car next year. Which of the following types of investments potentially has the lowest investment risk while also growing in value?

• Collectibles

• Real Estate

• Savings Account

• Stocks

Which one of the following is not an example of investing?

• Buying a business to open an ice cream shop

• Buying a car to get to work

• Buying rental property

• Buying a tow truck wit a blade to start a towing ans snow removal service

Simple interest is best defined as

• Interest earned on the principal investment

• Any form of interest earned from saving or investing

• Earning interest on interest

• The effect interest has on the total return on investment

In relation to the other options, how liquid is a savings account?

• More liquid than cash

• Less liquid than mutual funds

• More liquid than a Certificate of Deposit

• More liquid than a checking account

An account at a depository institution that provides an easy method for withdrawing and depositing money.

• Certificate of Deposit

• Checking Account

• Money Market Deposit Account

• Savings Account

Which type of savings tool is the MOST Liquid?

• Savings

• Checking

• Certificate of Deposit

• Money Market Account