Savings Quiz

Savings is important to the economy because why?

• It means people are earning a lot of money

• It generates loan money for people and businesses

• Banks should have a lot of money in their vault

• It means people are not spending

A bank account that allows you to deposit/withdraw money at any time and earns interest is a

• money market fund

• money market deposit account

• regular savings account

• certificate of deposit

Interest earned on both the principal and any interest earned on the principal.

• Rate of return

• Compound interest

• Simple interest

• Principal earnings

You earn _______________ by saving money in a savings account.

• money

• interest

• awards

• trophies

Interest calculated on the amount of money deposited ONLY.

• Daily

• Simple

• Compound

• Annual

Match the following

• extra money paid back when money is borrowed

• Interest

• to take or receive something with the promise of returning it

• Credit

• the cost required for something; the money spent on something

• Expenses

• to let your property (money, toys) for temporary use understanding that it will be given back

• Borrow

• borrowed money from the bank with a promise to repay the money with interest

• Lend

Karla wants to collect money to go to college. Which of the following is the best way for Karla to collect money for college?

• Open a savings account and place money there every pay period

• Spend all the money she earns from working on clothes and entertainment

• Give away the money she earns from working to her friends

• Spend all the money she earns on electronics

This type of account is used to save money.

• Checking

• Savings

What does deposit mean?

• You are putting money INTO your account.  YOU are ADDING it to your balance. 

• You are taking money OUT of your account.  You are SUBTRACTING it from your balance. 

What does withdrawal mean?

• You are putting money INTO your account.  YOU are ADDING it to your balance. 

• You are taking money OUT of your account.  You are SUBTRACTING it from your balance.