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PFM Chapter 8 Review

Total questions: 18

Worksheet time: 9mins

Name
Class
Date
1.

When you save, you trade spending now for the ability to spend in the future.

a)

True

b)

False

2.

The more often interest is compounded, the less interest you make

a)

True

b)

False

3.

Money market accounts pay higher interest rates than regular savings accounts do

a)

True

b)

False

4.

There are many compound interest calculators available on the Internet

a)

True

b)

False

5.

The best way to save successfully is to make saving a regular payment from each paycheck

a)

True

b)

False

6.

A credit union is a financial institution that serves a wide variety of individuals

a)

True

b)

False

7.

Simple interest is earned on just your principal, not on the interest earned previously

a)

True

b)

False

8.

The higher the rate of interest, the less interest your money will earn

a)

True

b)

False

9.

A written promise to pay a debt by a specific date is called a

a)

Yield

b)

Bond

c)

Bank deposit

d)

Dividend

10.

Which of the following specializes in lending to consumers who want to buy homes?

a)

Commercial bank

b)

Credit unions

c)

Savings and loan associations

d)

Finance companies

11.

Interest can be compounded

a)

Annually

b)

Daily

c)

Quarterly

d)

All of the above

12.

The dollar value printed on a bond is the

a)

Number of the bond

b)

Face value of the bond

c)

Interest of the bond

d)

Term of the bond

13.

Financial institutions that offer memberships to people who share a common bond

a)

Savings banks

b)

Credit unions

c)

Commercial banks

d)

Savings and loan associations

14.

Savings accounts are

a)

Offered by any savings institution

b)

A place in which you can deposit money

c)

A way you can earn interest

d)

All of the above

15.

Interest paid annually at the end of the year on the average balance in the savings account is

a)

Simple interest

b)

Compound interest

c)

Consumer interest

d)

Fixed interest

16.

Interest paid on principal & on previously earned interest & the interest is left in account

a)

Simple interest

b)

Compound interest

c)

Interest

d)

Flexible interest

17.

A dividend is not actually a share of a company's profits

a)

True

b)

False

18.

Almost all deposits are insured by a federal government agency

a)

True

b)

False