Personal Finance Semester 2 Review

Which savings vehicle would be best if you want to earn as much interest as possible and don’t need immediate access to the money?

• Savings Account

• Checking Account

• Regular Mutual Fund

• Certificate of Deposit (CD)

If a savings account earns 2.5% interest, that typically means you will earn 2.5% interest over what period of time?

• Monthly

• Weekly

• Daily

• Yearly

Money in your checking and savings accounts is protected by ________ insurance which protects up to ________ of your money.

(a)  

50-30-20 Rule:

• 50% savings, 20% essentials, 30% non-essentials

• 50% non-essentials, 20% savings, 30% essentials

• 50% investments, 20% essentials, 30% savings

• 50% essentials, 20% savings and investments, 30% non-essentials

Tags

CCSS.6.RP.A.3C

Name 2 factors that impact your credit report.

• Bank account balance, marital status

• Height, weight

• Favorite color, car model

• Payment history, credit utilization

A loan with a longer term will have a ________ monthly payment and a ________ total loan amount.

(a)  

Tags

CCSS.8.EE.C.7B

What is the average annual return of the S&P 500 (adjusted for inflation)?

• 3-4%
• 10-12%

• 1-2%

• 6-7%

Samaya has a savings account earning 0.5% interest. Her money will lose purchasing power over time due to what?

• Deflation

• Recession

• High interest rates

• Inflation

What is the main advantage of having an IRA or 401(k) account for retirement?

• Guaranteed returns

• Immediate access to funds

• No contribution limits

• Tax advantages (such as tax-deferred growth or tax-free withdrawals)

What type of investment vehicle is a loan to a corporation or government in which you are paid back both the principal and interest?

• Stock

• Mutual Fund

• Real Estate

• Bond