Money Matters Chapter 5 Quiz - Savings

Which savings product requires a person to commit his or her money for the longest period of time?

• certificate of deposit (CD)

• interest-bearing savings account

• high-yield savings account

You must pay ________________ on the interest earned by your savings.

Which of the following strategies will help make your savings grow?

• Choose accounts with low interest rates.

• Make savings a regular part of your budget.

• Make frequent withdrawals.

Which is the best example of a SMART goal (financial)?

• I will save money for college

• I will take out $50 from each paycheck

• I will save $1,000 by June of this year

• I want to lose weight

The ease of converting an asset into cash without losing value is known as?

• interest

• cash flow

• conversion

• liquidity

_____ interest periods offer more flexibility for depositing and withdrawing money without loss of interest.

• Simple

• Shorter

• Longer

• Variable

You must pay ________________ on the interest earned by your savings.

The FDIC and NCUA insure deposits in financial institutions up to this amount

Restrictions and penalties can affect an account’s _____.

Which of the following is necessary to use the Rule of 72?