Which federal agencies regulate financial institutions to ensure their solvency?

• FDIC (Federal Deposit Insurance Corporation) and NCUA (National Credit Union Administration)

• NSBO (National States Banking Regulators) and NCUA (National Credit Union Administration)

• FDIC (Federal Deposit Insurance Corporation) and NSBO (National States Banking Regulators)

• Federal Reserve and NSBO (National States Banking Regulators)

Like traditional savings accounts, but offer higher interest rates.

• High-yield savings accounts
• Money market accounts
• Certificates of deposit
• Regular savings accounts

Which of the following is true about 401(k) plans?

• 401(k) plans have the same contribution limits as IRAs

• Employers pay the investment fees for 401(k) plans

• An employer may provide a match to your contributions

• Employers are required to offer 401(k) plans to employees

An emergency fund typically comprises of how many month(s) of your usual expenses?

• 2-4 weeks

• 3-6 months

• 1 year

• 2-3 years

What is the primary difference between a traditional individual retirement account (IRA) and a Roth IRA?

• The Roth IRA is for education savings, whereas the traditional IRA is used for retirement savings

• A traditional IRA uses pre-tax dollars, whereas a Roth IRA uses post-tax dollars

• Your earnings in a Roth IRA are taxed, but your contributions are not

• A Roth IRA allows you to avoid all taxes on your income

Employees are automatically enrolled and must actively choose to opt out or decline to participate in certain option available to them. What is this called?

• Roth IRA

• Employees can only opt in to participate.
• Opt out

• Auto enroll option

As of late 2020, 34% of Americans had less than how much money in their savings accounts?

• $0

• $1000

• $5000

• $10,000

Which of the following is true about savings accounts?

• You can only have a savings account if you also have a checking account

• You must have a minimum income to have a savings account

• The interest rate for savings account are set by the Federal Reserve

• Each financial institution will have its own rates and fees

This term refers to any money transfers or contributions that are made to your savings account.

• deposits

• balances

• investments

• withdrawals

A tax-advantaged investment account that allows individuals to save for retirement. Contributions may be tax-deductible, while earnings grow tax-deferred until withdrawal, at which point they are taxed as ordinary income.

• Roth IRA
• 401(k) Plan
• Traditional IRA
• Health Savings Account