Banking & Financial Services Saving & Investing

Which of the following is not a retirement account provided by employers?

• Roth IRA
• Simplified Employee Pension (SEP)
• 401(k) plan
• SIMPLE IRA plan

Savers with long-term goals are primarily concerned with _____ when opening a savings account.

• interest
• convenience
• safety
• liquidity

The interest rate paid to customers on savings accounts is based on each of the following except _____.

• the customer's credit score
• length of time
• competitors' interest rates
• the amount deposited

Which of the following typically pays the highest interest rate?

• money market mutual account
• custodial account
• passbook account
• online savings account

Accrued interest is _____.

• the amount added to the principal at regular time periods
• the rate of return on an investment for a one-year period
• used to compare different interest rates at different financial institutions
• interest paid on interest

A retirement savings plan that enables employees to make tax-deferred or taxed contributions through payroll deductions

• 401(k) plan
• time deposit
• statement
• social security

Anyone authorized to perform transactions in an account

• account holder
• 401(k) plan
• time deposit
• statement

The amount added to the principal at regular time periods

• accrued interest
• account holder
• 401(k) plan
• time deposit

The rate of return on an investment for a one-year period

• annual percentage yield (APY)
• accrued interest
• account holder
• 401(k) plan

Services, privileges, or rights that an employer provides in addition to the employee’s wages or salary

• benefits
• annual percentage yield (APY)
• accrued interest
• account holder