WorksheetsSavings
Total questions: 35
Worksheet time: 18mins
Name
Class
Date
1.
Interest is:
a)
a charge for lending money to a bank
b)
the amount owed for borrowing money
c)
the amount added into your savings when opening a bank account
d)
a charge for the convenience of accessing money stored in your bank account
2.
Anthony is deciding between different savings accounts at his bank. He has four options,based on how frequently interest compounds. Which should he choose if he wants the best rate of return on his interest?
a)
Annual Compounding
b)
Semi-Annual Compounding
c)
Monthly Compounding
d)
Daily Compounding
3.
To earn as much interest as possible, you should open a savings account that earns _______interest and has the ______ interest rate.
a)
compound; lowest
b)
compound; highest
c)
simple; lowest
d)
simple; highest
4.
What is the typical relationship between time and interest rate?
a)
Longer time period usually equals higher interest rates
b)
Shorter time period usually equals higher interest rates
c)
Longer time periods usually have no effect on interest rates.
d)
Shorter time periods usually have no effect on interest rates.
5.
Jane just opened a savings account and wants to maximize the amount of interest she earns.Which of the following actions would enable her to earn MORE interest?
a)
Selecting an account with a high interest rate.
b)
Leaving his money in the account for long period of time.
c)
Transferring money into his checking account each month.
d)
Both A & B
6.
Tamara has $500 she is looking to save for a class trip. She wants to earn the most possible interest and will not need access to her money for a full year. Which type of savings account will be best for Tamara?
a)
Certificate of Deposit (CD)
b)
Money Market Account
c)
Savings Account
d)
Checking Account
7.
You are opening a savings account that earns compound interest. Which compounding frequency will earn you the MOST money?
a)
Compounding 1 time a year
b)
Compounding 4 times a year
c)
Compounding monthly
d)
Compounding daily
8.
Which of the following is considered a "need"?
a)
Food
b)
Pizza
c)
Gatorade
d)
Fruit
9.
Which of the following is a type of savings vehicle?
a)
Certificate of Deposit
b)
Money Market Account
c)
Checking Account
d)
Both A & B
10.
Which type of account typically has very high liquidity, low or no interest, and low minimum balance?
a)
Checking Account
b)
Money Market Account
c)
Certificate of Deposit (CD)
d)
Investment Retirement Account (IRA)
11.
Which of the following is generally true about savings vehicles?
a)
Savings vehicles are only useful for long-term investments.
b)
People should evaluate different forms of savings vehicles based on their needs.
c)
Savings vehicles are never insured.
d)
All of the above
12.
Which of the following is considered a "want"?
a)
A warm winter coat
b)
Shoes
c)
Designer Sneakers
d)
Socks
13.
Which of the following accounts will give you the LEAST access to your money?
a)
Simple savings account
b)
Certificate of Deposit (CD)
c)
Checking account
d)
Cash
14.
When it comes to saving money, what is a good rule of thumb?
a)
Keep most of your savings in your checking account
b)
Put aside money for savings each month
c)
Choose the savings account with the lowest interest rate
d)
Put anything you can’t afford on your credit card
15.
You can only open a saving account at a bank
a)
True
b)
False
16.
In order to open a savings account you need a drivers license
a)
True
b)
False
17.
The standard deposit insurance on a savings account is
a)
100,000.00
b)
150,000.00
c)
200,000.00
d)
250,000.00
18.
A money market account is a type of savings account
a)
true
b)
false
19.
To help maintain this reserve, there is a limit of _ monthly withdrawals on a savings account based on the Federal Reserve Regulation D.
a)
4
b)
5
c)
6
d)
7
20.
You can open up a savings account on-line
a)
False
b)
True
21.
The best approach to saving money is to pay yourself first.
a)
True
b)
False
22.
Using a savings account creates some distance between everyday spending money and cash that’s meant for a later date, like an emergency fund or vacation savings.
a)
True
b)
False
23.
Certificate of deposit, or CD, holds money for a fixed term, anywhere from a few months to a few years.
a)
True
b)
False
24.
Open a CD only with money you won’t need immediately, because withdrawing money before the end of the term carries a penalty.
a)
True
b)
False
25.
A CD (Certificate of Deposit account ) usually offers the highest annual percentage yield; the longer the term you commit to, the higher the interest rate.
a)
True
b)
False
26.
The best part of a savings account is that it requires a low minimum balance like $25.00 or sometimes no minimum balance at all
a)
True
b)
False
27.
FDIC Stands for
a)
Federal Direct Insurance Corporation
b)
Federal Deposit Insurance Corporation
c)
Federal Direct Insurance Company
d)
Federal Deposit Insurance Company
28.
The FDIC is a part of the federal government?
a)
False
b)
True
29.
Interest on savings accounts is usually compounded daily and paid monthly
a)
True
b)
False
30.
banks are commercial businesses, credit unions are typically non-profit cooperative organizations
a)
True
b)
False
31.
Banks usually offer two types of savings accounts: a basic savings account, and a money market account.
a)
True
b)
False
32.
The beginning balance is typically your first deposit into your savings account
a)
True
b)
False
33.
A statement is something you get each month from your bank or credit union that shows you all of your transactions on your account
a)
True
b)
False
34.
What does it mean to reconcile your account?
a)
Review the statement you receive each month from the bank
b)
Close your account
c)
Go through your deposits and withdrawals and make sure they match the banks
d)
Go into the bank each month
35.
Banks and Credits unions make money off of your account by
a)
Charging Fees and Penalities
b)
Reinvesting The Money
c)
Investing your money into off shore accounts
d)
Both A and B
100 %
