WorksheetsSavings and Investing Review # 2
Total questions: 15
Worksheet time: 15mins
A key difference between saving and investing is
Saving is for everyone, investing is for the wealthy
Your money is insured when investing, it is not in savings
Investing has a guaranteed return, savings does not
Saving is for emergencies & goals, investing is for long-term wealth
Why is compound interest more beneficial than simple interest? (hint: choose 2 correct answers)
Your money grows faster when it is compounded
You earn interest on your interest
Fees for compound interest are greater than simple interest
Compound interest is hard to calculate, so fewer use it
Which would be considered the highest risk investment type?
Stock
Mutual Fund
Bond
Money Market Account
The relationship between risk and return can be stated as
Higher risk indicates higher return
Higher risk indicates lower return
Lower risk indicates higher return
No relationship exists between risk and return
Overdraft protection...
is a service offered only for premium checking accounts.
brings in a few hundred dollars each year to banks.
is a fee-free service that prevents you from overdrawing.
can keep you from overdrawing but charges a fee.
Which of the following is a true statement about banking?
Keeping your money at home instead of a banks prevents you from paying the interest fees that banks charge.
It's generally safer to keep your money in a bank than to keep it at home.
Most new businesses are forced to start without loans from banks.
Most banks give their customers interest-free loans.
Bank's make their profits primarily by issuing ________.
equity
negotiable CDs
loans
notice deposits
When you use an online bank account the data that leaves your computer is usually ....
Embossed
Encoded
Encracked
Encrypted
To use an online bank account you will need access to...
An ATM
The high street branch
A mobile phone
The Internet
