Saving and Financial Planning Quiz

What is the definition of saving?

• Investing money for immediate returns

• Trading current spending for the ability to spend in the future

• Borrowing money to cover current expenses

• Putting money under a mattress for safekeeping

What does "Pay Yourself First" imply in saving strategies?

• Spend on leisure activities before saving

• Prioritize saving by setting aside money before spending on other expenses

• Pay off debts before saving any money

• Invest in stocks before saving in a bank account

According to the saving strategies, what should you consider savings as?

• An optional financial goal

• A fixed amount to be saved every month

• An expense in your budget

• A percentage of your yearly bonus

What type of financial institution is a Commercial Bank?

• A non-profit organization

• A financial institution that serves only businesses

• A financial institution that serves individuals and businesses

• A financial institution that offers memberships based on a common bond

What is a common requirement for membership in a Credit Union?

• Having a large amount of money to deposit

• Being part of a certain industry

• Sharing a common bond such as place of employment

Which agency provides deposit insurance for Commercial Banks?

• NCUA

• IRS

• FDIC

• SEC

Which agency provides deposit insurance for Credit Unions?

• FDIC

• IRS

• SEC

• NCUA

What is a Savings Account commonly known as?

• CD Account

• APY Account

• Passbook Savings Account

• Money Market Account

What does a Certificate of Deposit (CD) offer?

• A variable interest rate over time

• The actual interest rate an account pays per year

• A fixed interest rate for a specific period of time

• The ability to withdraw funds at any time

What characterizes a Money Market Account?

• The interest rate does not change over time

• It offers a fixed interest rate for a specific period of time

• The interest rate changes over time as interest rates in the economy change

• It is calculated the same way by all banks