Savings

Lucy has $50. She wants to start saving money, but also be able to access her money without penalty.

Which type of savings account should she open?

• Traditional savings

• Money Market Account

• Certificate of Deposit (CD)

Katie has an $1000. She wants to save this money and is fairly certain she won't need it for anything for at least 5 years.

Which type of savings account should she open?

• Traditional savings

• Money Market Account

• Certificate of Deposit (CD)

Brandy has $15,000. She wants to save this money, earn some good interest on it, but still have some access to it.

Which type of savings account should she open?

• Traditional savings

• Money Market Account

• Certificate of Deposit (CD)

_____% of Americans have less than $1,000 saved for an emergency.

• 40

• 45

• 50

• 55

One effect of an increase in the amount of savings in an economy is —

• an increase in consumer spending

• a decrease in retirement investments

• a decrease in the production of goods and services

• an increase in financial resources for business investment

What is the primary purpose of a savings account?

• To earn interest on deposited funds

• To provide loans to others

• To invest in the stock market

• To pay monthly bills

Which of the following is a benefit of having a savings account?

• Unlimited withdrawals

• High interest rates

• Safety of funds

• No minimum balance requirement

What is a common feature of a Certificate of Deposit (CD)?

• High liquidity

• Fixed interest rate

• No maturity date

• Unlimited deposits

Which type of savings account typically offers the highest interest rate?

• Traditional savings account

• Money Market Account

• Certificate of Deposit (CD)

• Checking account

What is the main disadvantage of a Certificate of Deposit (CD)?

• Low interest rate

• Limited access to funds

• No interest earned

• High fees