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WorksheetsCh. 10 Review
Total questions: 25
Worksheet time: 13mins
Name
Class
Date
1.
Short-term needs include things such as home ownership, education of children, and retirement.
a)
YES
b)
NO
2.
Discretionary income is income you have left to spend after the bills have been paid.
a)
YES
b)
NO
3.
A regular savings account pays LESS interest than a certificate of deposit.
a)
YES
b)
NO
4.
Certificates of deposit are LESS liquid than regular savings accounts.
a)
YES
b)
NO
5.
Compound interest is interest compounded on the original principal PLUS accumulated interest
a)
YES
b)
NO
6.
The law requires all financial institutions to tell consumers the annual percentage yield on their accounts
a)
YES
b)
NO
7.
Liquidity is a major advantage to regular savings account
a)
YES
b)
NO
8.
A money market account is insured by the FDIC for a maximum of $250,000
a)
YES
b)
NO
9.
Commercial banks have insurance with the FDIC
a)
YES
b)
NO
10.
Credit unions usually offer higher interest rates for their members
a)
YES
b)
NO
11.
Credit unions do not provide insurance for their depositor’s savings
a)
TRUE
b)
FALSE
12.
Early withdrawal penalties are charged against certificates of deposit for withdrawals prior to maturity
a)
YES
b)
NO
13.
Money compounded quarterly earns more interest than money compounded annually.
a)
YES
b)
NO
14.
The initial amount of money deposited to earn interest is called
a)
principal
b)
earnings
c)
investment
d)
diversification
15.
You will receive the greatest gain on your principal if interest is compounded
a)
annually
b)
semiannually
c)
quarterly
d)
daily
16.
A savings account at a credit union is called
a)
savings club
b)
money market account
c)
share account
d)
certificate of deposit
17.
Money left over after you have paid bills is
a)
interest
b)
discretionary income
c)
principal
d)
compound interest
18.
Which of the following is the least liquid investment?
a)
savings account
b)
money market
c)
all of these are acceptable
d)
certificate of deposit
19.
Interest paid on the principal PLUS interest already earned
a)
direct deposit
b)
compound
c)
interest
d)
FDIC
20.
The quality of a savings being easily converted into cash
a)
Principal
b)
Liquidity
c)
Discretionary Income
d)
FDIC
21.
Money paid for the use of your money. You get this when you deposit your money.
a)
FDIC
b)
Direct Deposit
c)
Savings
d)
Interest
22.
Insurance that covers deposits in a bank
a)
Discretionary
b)
Liquidity
c)
Maturity
d)
FDIC
23.
_________ lets you know how fast your money will double
a)
Rule of life
b)
Waste your time is to waste your life
c)
Live like you don't have $, someday live like you do
d)
Rule of 72
24.
Which interest rate would double faster?
a)
1%
b)
2%
c)
5%
d)
8%
25.
Why should YOU start now?
a)
Wait until tomorrow, Christmas is coming
b)
I don't have to save, social security will take care of me
c)
Time is important, grows slower
d)
The longer you let your money work, the more money you will have
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