Chapter 3 : Consumer Mathematics (Savings) Form 3

Which type of account offers the highest interest rate?

• Fixed Deposit Account

• Wadiah Account

• Savings Account

• Current Account

The following image shows a type of:

• Money

• Cheque

• Account

• Bank Draft

What is the purpose of saving?

• Future needs

• Emergency use

• Additional income

• All of the above

The following are types of savings accounts except:

• Fixed Deposit Account

• Savings Account

• Employee Account

• Current Account

An account holder can make payments to another party using a cheque.

The statement above relates to ...

• Current Account

• Savings Account

An account used to deposit or withdraw money at any time and earns interest.

The statement above relates to ...

• Savings Account

• Current Account

Madam Faridah deposits RM20,000 in a bank to finance her children’s education in the future. What type of savings is this?

• Fixed Deposit Account

• Current Account

Definition of Simple Interest:

• The reward given to a depositor based on a specific rate applied to the principal amount for a certain period (in years).

• Interest calculated based on the original principal and also the accumulated interest from previous periods.

Choose the correct statement.

• A lower interest rate offers a higher return.

• The longer the saving period, the higher the interest earned.

• Savings with compound interest generate lower returns than savings with simple interest.

• Different interest rates will provide the same interest return for the same principal amount.

We can save money in the following accounts EXCEPT:

• Current Account

• Property

• Savings Account

• Fixed Deposit Account