3-4 Savings Accounts Quiz Business U

What is a Certificate of Deposit (CD)?

• A type of savings account with no withdrawal penalties

• A fixed-amount and fixed-term financial product offered by banks

• A loan offered by banks with variable interest rates

• A checking account with unlimited transactions

What does the Discount Rate refer to?

• The interest rate for personal loans

• The interest rate for credit card balances

• The interest rate at which eligible depository institutions can borrow short-term funds from the Federal Reserve Bank

• The interest rate for long-term mortgages

What is the Federal Funds Rate?

• The interest rate for student loans

• The interest rate at which banks lend reserves to each other overnight

• The interest rate for car loans

• The interest rate for savings accounts

What does Inflation refer to?

• The decrease in the general level of prices in an economy

• The increase in the general level of prices in an economy

• The stabilization of prices in an economy

• The fluctuation of prices in an economy

What is Interest in financial terms?

• The cost (or income) of borrowing (from loaning) money

• The amount of money saved in a bank account

• The fee for opening a bank account

• The penalty for early withdrawal from a CD

What is a Money Market Account (MMA)?

• A type of loan with fixed interest rates

• A deposit account with higher interest rates than traditional savings accounts

• A checking account with no minimum balance requirements

• A credit account with low interest rates

What is a Savings Account?

• An account with unlimited monthly withdrawals

• An interest-bearing deposit account with limitations on monthly withdrawals

• A non-interest-bearing account with no withdrawal limits

• A loan account with fixed interest rates