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5.02 Savings Tools Note Taking Guide

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.
Which is the most liquid?
a)
Checking Account
b)
Savings Account
c)
Money Market Deposit Account
d)
Certificate of Deposit
2.
Which is designed to hold money not spent on current consumption?
a)
Checking Account
b)
Savings Account
c)
Money Market Deposit Account
d)
Certificate of Deposit
3.
Which often has tiered interest rates –the amount of interest earned depends on the account balance?
a)
Checking Account
b)
Savings Account
c)
Money Market Deposit Account
d)
Certificate of Deposit
4.

Which account is used for a fixed period of time and allows restricted access to the funds?

a)

Checking Account

b)

Savings Account

c)

Money Market Deposit Account

d)

Certificate of Deposit

5.
Which account is the least  liquid?
a)
Checking Account
b)
Savings Account
c)
Money Market Deposit Account
d)
Certificate of Deposit
6.

Which account is effective for storing emergency funds?

a)

Checking Account

b)

Savings Account

c)

Money Market Deposit Account

d)

Certificate of Deposit

7.

Which account must be held for a certain length of time (usually a couple of years)?

a)

Checking Account

b)

Savings Account

c)

Money Market Deposit Account

d)

Certificate of Deposit

8.

Which account do you usually have to deposit a minimum amount to open the account (typically $1,000)?

a)

Checking Account

b)

Savings Account

c)

Money Market Deposit Account

d)

Certificate of Deposit

9.

Which account is more liquid than other savings tools (except checking accounts)?

a)

Checking Account

b)

Savings Account

c)

Money Market Deposit Account

d)

Certificate of Deposit

10.
Which account earns interest but rates are often low?
a)
Checking Account
b)
Savings Account
c)
Money Market Deposit Account
d)
Certificate of Deposit
11.
Which accounts interest varies (depending on time and amount of money deposited)?
a)
Checking Account
b)
Savings Account
c)
Money Market Deposit Account
d)
Certificate of Deposit
12.

Which account is do not earn interest, but if offered, rates are low?

a)

Checking Account

b)

Saving Account

c)

Money Market Deposit Account

d)

Certificate of Deposit

13.

Savings tools - Accounts offered by ___________ assisting in savings.

a)

Banks

b)

Credit Unions

c)

Depository Institutions

14.

Two reasons why savings tools are ideal for storing emergency savings is because they are secure and _______.

a)

Easy

b)

Expensive

c)

Liquid

d)

Risky

15.

It is important to understand features of savings tools to determine the savings tool ______________.

a)

Most appropriate for avoiding a financial goal

b)

Most appropriate for reaching a financial goal