What is the process of setting aside money for future use instead of spending it immediately?​

• currency management

• investing

• savings

• checking

What is the act of using money to purchase goods or services?​

• financial planning

• commerce

• trade

• consumption

What is the term for the percentage of income that is not spent on consumption but instead saved?​

• amortization rate

• savings rate

• percentage rate

• budgeting

What is one major benefit of saving money regularly?​

• financial strategizing

• financial literacy

• financial planning

• financial security

What is the percentage gain or loss on an investment over a specific period?

• rate of return

• rate of investment

• credit period

• holding period return

What is the term for interest earned on both the initial deposit and previously earned interest?​

• compound interest

• simple interest

• amortized interest

• holding period return

Why does compound interest benefit savers more than simple interest?​

• Because they don't get to withdraw it so it grows faster.

• It doesn't. Interest is interest.

• It grows money faster.

If you invest $1,000 at an annual interest rate of 5%, approximately how much will you have in 10 years if the interest is compounded annually?​

• $20,000

• $1,628.89​

• $10,500.00

• $16,288.9​0

What is the term to describe individuals who do not use banks or credit unions for financial transactions?​

• cash reliant

• underserved

• unbanked

• informal

What is a major disadvantage of being unbanked?​

• higher fees for financial services

• the inability to cash checks

• the inability to retire comfortably

• their private information isn't secured