PF Unit 3 Test

Where should your funds be held for immediate needs?

• Checking Accounts
• Savings/CD's/Money Market Accounts
• Investment Accounts

Where should your funds be held for intermediate term needs? < 3 years

• Checking Accounts
• Savings/CD's/Money Market Accounts
• Investment Accounts

Where should your funds be held for long term needs? > 3 years

• Checking Accounts
• Savings/CD's/Money Market Accounts
• Investment Accounts

Initial amount of money borrowed or deposited.

• Principal
• Interest
• APY
• Fees

Money earned from savings or additional money paid from borrowing

• Principal
• Interest
• APY
• Fees

Actual interest rate on a yearly basis with compounding included

• Principal
• Interest
• APY
• Fees

Additional charges for activities added to balances

• Principal
• Interest
• APY
• Fees

Savings option with high liquidity, lowest risk, lowest return

• Savings account
• Money Market Account
• CD
• Government Bond

Savings option with more competitive interest rates and no penalties for early withdrawal

• Savings account
• Money Market Account
• CD
• Government Bond

Savings option with penalties for withdrawal prior to maturity date.

• Savings account
• Money Market Account
• CD
• Government Bond