Banking & Savings

Which is the correct way to allocate your net income according to the 50-30-20 budget method?

• 50% savings, 30% savings, 20% needs

• 50% needs, 30% savings, 20% wants

• 50% needs, 30% wants, 20% savings

• 50% wants, 30% needs, 20% savings

A savings account where you deposit your money for a fixed time and a fixed interest rate is called?

• Certificate Of Deposit (CD)

• Wealth

• Interest

• Pay Yourself First

When your deposits in a savings account earn interest on BOTH the principal (original deposited amount) and any interest already earned, this is known as?

• Simple Interest

• Wealth

• Pay Yourself First

• Compound Interest

What is the term for an automatic electronic deposit of NET pay (paycheck) to an employee's designated bank account?

• Health Savings Account (HSA)

• Direct Deposit

• Certificate of Deposit

• Payroll Transfer

What is set aside for unexpected expenses or loss of income?

• Simple Interest

• 50-20-30 Rule

• Certificate of Deposit (CD)

• Emergency Fund

What federal program insures deposits in US banks up to $250,000?

• 50-20-30 Rule

• Federal Deposit Insurance Corporation (FDIC)

• Compound Interest

• Simple Interest

What do you earn from the money you deposit in an interest bearing account?

• Direct Deposit

• Rule of 72

• Interest

• Principal

What is a savings account that is managed entirely online with no physical bank branch, typically offering higher interest rates called?

• Wealth

• Pay Yourself First

• Online Savings Account

• 50-20-30 Rule

What is the BEST method of saving where you put a fixed amount of income into a savings account BEFORE you pay monthly bills or make purchases?

• Online Savings Account

• Emergency Fund

• Pay Yourself First

• Interest

What is the original amount of money saved or invested called?

• Principal

• Direct Deposit

• Rule Of 72

• Federal Deposit Insurance Corporation (FDIC)