Banking Basics

Money paid to you by a financial institution when you deposit funds there.

• Allowance
• Income
• Interest
• Tips

Act of purchasing assets (stocks, bonds, property) with expectation that they will increase in value over time.

• Withdrawing
• Depositing
• Buying on the margin

• Investing

The phrase "Not putting all your eggs in one basket" means to

• invest in the same stock.
• invest in dairy stock
• invest in livestock
• invest in different types of stock.

A low risk investment offered by the government that has the most predictable income.

• Certificate of Deposit (CD)
• U.S. Savings Bond
• Money market account
• Corporate Bonds

Which of the following is the most liquid asset?

• Stocks
• Savings Bonds
• Checking Account
• Certificate of Deposit (CD)

Owned by members or employees of a local employer

• Bank

• Credit Union

• Both

Offers Savings and Checking Accounts

• Bank

• Credit Union

• Both

Nonprofit

• Bank

• Credit Union

• Both

Focus is on profit

• Bank

• Credit Union

• Both

Generally lower savings rates and higher fees

• Banks

• Credit Cards

• Both