personal finance 3

Which of the following is an effective strategy for personal savings

• save a certain percentage of each paycheck and deposit it directly into a savings account

• take out a paycheck loan so you can save before you receive your paycheck

• wait until the end of the month and save whatever is left in your checking account

• cover all of your wants and needs and save whatever is left over

All the following statement about bank accounts are true EXCEPT...

• Money in a checking account is usually easy to access via ATM, debit card or check

• Many banks pay in interest on the money you deposit into your savings account

• if the bank is FDIC-insured, your money up to the FDIC limit, is safe even if the bank falls

• Historically sayings accounts earn higher returns the investment in the stock market

you are developing a savings plan and using short-, medium,-and long-term goals to motivate you. Which represents possible goals from short-term to long-term? save for

• Retirement, a house down payment, collage tuition

• A new cell phone,dinner with friends this weekend, a new bike

• Retirement, collage tuition, a vacation

• A new cell phone, collage tuition, a house down payment

Which represents the BEST time to start saving for your retirement

• once you are debt-free,including paying off all credit cards, auto loans, and your mortgage

• At age of 45, so you have exactly 20 years until retirement

• right after you pay off your student loans

• As soon as you have your first full-time job

which of the following statements is TRUE

• The majority of Americans have an adequate emergency fund, but do NOT have sufficient amounts of money saved for retirement

• The majority of Americans do NOT have an adequate emergency fund or sufficient amounts of money saved for retirement

• the majority of Americans have sufficient amounts of money saved for retirement

• the majority of Americas have an adequate emergency fund

Experts recommend that you accumulate enough to cover 3 to 6 _________ of expenses in your emergency fund

• weeks

• Days

• months

• years

Three of these statements best describe a checking account. Which statement best describe a savings account

• This account offers a convenient way to pay bills and access cash from the ATM

• this account typically allows an unlimited number of transactions per month

• This account is automatically debited when you use a debit card

• This account pays you interest on money you have to put away for later to help your money grow

You are at the checkout counter at the local supermarket and use your debit card to pay for your groceries.Where does the money for this purchase come from

• It is deducted directly from your savings account

• it is deducted directly from your checking account

• your credit card company covers the cost

• your credit card company provides you with cash advance to cover the cost

Fill in the blanks: if inflation is ________ your savings account interest rate will be _________ purchasing power

• lower than,losing

• higher than, gaining

• equal, gaining

• higher than, losing

Which of the following transactions will REDUCE your checking account balance immediately

• writing your monthly rent check which you will mail tomorrow

• using your debit card to pay for groceries at the supermarket

• deposing a check at a local bank branch

• using your credit card to pay for your school book