Saving and Financial Needs Quiz

What are long-term needs?

• Expenses that are planned for the future

• Expenses that occur daily

• Expenses that are always unexpected

• Expenses that are never necessary

Education is considered a:

• Long-term need

• Short-term need

• Unnecessary expense

• Luxury

What does financial security provide?

• Peace of mind

• More spending money

• Higher taxes

• Immediate gratification

Which of the following is NOT a benefit of financial security?

• Spending impulsively

• Peace of mind

• Ability to pay for needs

• Less financial stress

Which of the following is a place where you can save money?

• Commercial banks

• Grocery stores

• Movie theaters

• Clothing shops

What is the tradeoff for high liquidity in a regular savings account?

• Lower interest rate

• Higher fees

• More paperwork

• Less security

Which of the following is NOT a kind of money market account?

• Money market checking account

• Money market deposit account

• Money market mutual fund

• Money market savings account

On average, money market funds will pay a __________ interest rate than money market deposit accounts.

• Higher

• Lower

• Equal

• No

Which of the following is a factor to consider when selecting a savings plan?

• Safety

• Color of the bank

• Location of your home

• Type of car you drive

Safety of principal means you are guaranteed not to lose your...

• Original deposit

• Interest earned

• Bank card

• Checkbook