Savings & Investing Review Quiz

What is the purpose of setting aside a portion of your pay regularly?

• To increase spending

• To meet financial goals

• To avoid taxes

• To impress others

What is the recommended initial amount to have in an emergency fund?

• $500

• $1,000

• $1,500

• $2,000

Which type of account involves setting aside money that you don’t spend now but can use later?

• Investment account

• Checking account

• Savings account

• Credit account

Which of the following is an example of an investment account?

• Saving accounts

• Interest bearing saving accounts

• Money market

• Certificate of deposits

What is the term for the amount of money paid to a lender for borrowing money?

• Windfall

• Interest

• Bonus

• Refund

Which of the following is an example of a windfall?

• Monthly salary

• Work bonuses

• Regular savings

• Daily expenses

What should you do with windfalls to boost your accounts?

• Spend them immediately

• Ignore them

• Funnel them into savings or investments

• Use them for daily expenses

What does "Ease of access" in saving options mean?

• You can earn interest on your balance

• You can take out what you put into the account

• You can check your balance anytime online

• Your money is insured

How do banks reward customers for keeping money in saving accounts?

• By offering discounts on loans

• By paying a percentage on the balance

• By providing free checks

• By giving gift cards

In the simple interest formula, what does 'R' represent?

• Rate

• Revenue

• Return

• Ratio