WorksheetsSaving for the Future- Chapter 10
Total questions: 25
Worksheet time: 13mins
Name
Class
Date
1.
A sum of money in a savings account on which interest is earned.
a)
interest
b)
principal
c)
APY
d)
share account
2.
A combination savings-investment plan in which the money deposited is used to purchase safe, liquid securities.
a)
share account
b)
liquidity
c)
money market account
d)
CD
3.
A deposit that earns a fixed interest rate for a specified length of time.
a)
principal
b)
certificate of deposit (CD)
c)
money market account
d)
discretionary income
4.
Stocks and bonds issued by corporations or by the government.
a)
interest
b)
savings account
c)
interest
d)
securities
5.
The ability of an asset to be converted into cash quickly without loss of value
a)
securities
b)
liquidity
c)
interest
d)
safety
6.
The date on which an investment becomes due for payment.
a)
discretionary income
b)
direct deposit
c)
maturity date
d)
investment date
7.
Money paid by a financial institution for the use of the saver's money.
a)
interest
b)
securities
c)
fees
d)
ODP
8.
Interest computed on the principal plus accumulated interest.
a)
compound interest
b)
simple interest
c)
securities
d)
future interest
9.
The amount of money left over after the bills are paid.
a)
interest
b)
annual income
c)
discretionary income
d)
net income
10.
A person who buys and sells securities for investors.
a)
teacher
b)
banker
c)
principal
d)
stockbroker
11.
The actual interest rate an account pays per year, with compounding included.
a)
annual percentage yield (APY)
b)
interest
c)
share account
d)
simple interest
12.
For use of the saver's money, the financial institution pays the saver money called principal.
a)
True
b)
False
13.
A regular savings account pays much more interest than a certificate of deposit.
a)
True
b)
False
14.
You may be charged a service fee if you make more than a maximum number of withdrawals from your regular savings account in one month or if your balance falls below a certain minimum.
a)
True
b)
False
15.
Certificates of deposit are less liquid than regular savings accounts.
a)
True
b)
False
16.
The law requires all financial institutions to tell consumers the annual percentage yield on their accounts.
a)
True
b)
False
17.
Liquidity is a major advantage to regular savings accounts.
a)
True
b)
False
18.
Interest rates on money market accounts go up and down with the stock market.
a)
True
b)
False
19.
Early withdrawal penalties are charged against certificates of deposit for withdrawals prior to maturity.
a)
True
b)
False
20.
Which of the following is not a short-term need?
a)
unemployment
b)
weekend trip
c)
retirement
d)
automobile repair
21.
Which of the following is not a long-term need?
a)
new car
b)
home ownership
c)
child's college education
d)
investment plans
22.
A stockbroker works for which type of financial institution?
a)
savings and loan
b)
brokerage firm
c)
credit union
d)
commercial bank
23.
If liquidity is important to you, which of the following savings options would you not want to consider?
a)
savings account
b)
certificate of deposit
c)
money market account
d)
all of these are acceptable
24.
A method to make regular saving easier is ____
a)
savings accounts
b)
certificates of deposit
c)
automatic payroll deducation
d)
money market accounts
25.
Short-term needs include things such as home ownership, education of children, and retirement
a)
True
b)
False
100 %
