WorksheetsSavings
Total questions: 17
Worksheet time: 9mins
Name
Class
Date
1.
Defined contribution retirement account that is taken out of your paycheck before you pay any taxes on this income.
a)
IRA
b)
Roth IRA
c)
401K
d)
Pension
2.
An account that pays interest on a specific sum of money that a person has deposited for a specific period of time. If withdrawn before that time,the bank imposes a penalty fee.
a)
Savings Account
b)
Certificate of Deposit (CD)
c)
Checking Account
d)
Money Market Account
3.
Interest paid periodically and paid on the principal plus interest earned.
a)
Simple Interest
b)
Compound Interest
c)
Hard Interest
d)
Double Interest
4.
The percentage rate that is used when calculating the interest (money) paid on a savings, money market, or investment account.
a)
Rule of 72
b)
Interest rate
c)
Simple Interest
d)
Rate of Return
5.
Money paid to you by a financial institution when you deposit funds there.
a)
Allowance
b)
Income
c)
Interest
d)
Tips
6.
Act of purchasing assets (stocks, bonds, property) with expectation that they will increase in value over time.
a)
Withdrawing
b)
Depositing
c)
Time Value of Money
d)
Investing
7.
Retirement account that allows investors to make tax-deductible contributions. Individuals are responsible for setting up and managing the account.
a)
401K
b)
IRA
c)
403B
d)
Social Security
8.
A type of bank account where the bank invests the money in government and corporate securities in order to pay a higher interest rate than a regular savings account. You typically have to have a large minimum balance in order to have such an account.
a)
Savings Account
b)
Money market account
c)
Checking Account
d)
CD
9.
A plan in which an employer guarantees a certain sum of money to the employee based on the number of years of service upon retirement.
a)
401K
b)
Defined Contribution Plan
c)
Pension
d)
IRA
10.
Refers to the likelihood that an investment will decrease in value.
a)
Chance
b)
Gamble
c)
Stake
d)
Risk
11.
A portion of your income that you do not spend on your current needs, but instead set aside for future needs.
a)
Collateral
b)
Discretionary Income
c)
Savings
d)
Net Worth
12.
An account you set up at a depository institution where you put funds for future use.
a)
Checking Account
b)
Christmas Fund
c)
Vacation Fund
d)
Savings account
13.
A quick way to estimate the amount of time it will take for your money to double when placed in a savings account at a given interest rate. 72 divided by interest rate.
a)
Rule of 27
b)
Rule of Doubles
c)
20/10 Rule
d)
Rule of 72
14.
The phrase "Not putting all your eggs in one basket" means to
a)
invest in the same stock.
b)
invest in dairy stock
c)
invest in livestock
d)
invest in different types of stock.
15.
The phrase "pay yourself first" means to
a)
Treat yourself to something you want before spending any other money.
b)
Set money aside for your Christmas savings fund.
c)
put at least 10% of your income in a savings account before spending any money.
d)
Make sure all of your bills and other expenses are paid before saving money.
16.
A low risk investment offered by the government that has the most predictable income.
a)
Certificate of Deposit (CD)
b)
U.S. Savings Bond
c)
Money market account
d)
Corporate Bonds
17.
Which of the following is the most liquid asset?
a)
Stocks
b)
Savings Bonds
c)
Checking Account
d)
Certificate of Deposit (CD)
100 %
