Chapter 7 - Saving and Investing Money Quiz

What is the primary definition of saving?

• Spending all of your income

• The part of income not spent

• Borrowing money from a bank

• Investing in stocks

Which of the following is NOT a reason for saving money?

• For retirement

• For emergencies

• To decrease your credit rating

• For future planned expenditure

What does a good credit rating indicate?

• A high likelihood of repaying a loan

• A low likelihood of repaying a loan

• Immediate loan approval

• No impact on loan approval

Which factor ensures that your savings are safe?

• Reward

• Liquidity

• Risk

• Convenience

What is the annual equivalent rate (AER)?

• A penalty for early withdrawal

• A type of tax on savings

• A measure of liquidity

• The rate of interest earned annually

What does DIRT stand for?

• Direct Investment Return Tax

• Direct Interest Rate Tax

• Deposit Income Rate Tax

• Deposit Interest Retention Tax

Which savings option is 100% secure and state guaranteed?

• Commercial banks

• An Post

• Credit unions

• Building societies

What is a demand deposit?

• A deposit that can be withdrawn anytime

• A deposit that requires notice before withdrawal

• A deposit with a fixed term

• A deposit with a high interest rate

Which institution is owned by its members?

• Credit unions

• Commercial banks

• An Post

• Building societies

What is the main reason for saving in a building society?

• To earn high interest

• To avoid taxes

• To access online banking

• To get a mortgage or loan for property