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Unit 3 - Personal Finance

Total questions: 15

Worksheet time: 20mins

Name
Class
Date
1.

What is the difference between a need vs a want?

4 lines
2.

What are the 3 rules of spending habits?

4 lines
3.

What is the definition of Liquidity?

4 lines
4.

How big should your emergency fund be?

a)

1-2 months of your annual salary

b)

3-6 years of your annual salary

c)

3-6 months of living expenses

d)

1-2 years of living expenses

5.

What is a savings tool with a fixed intrest rate and maturity date?

a)

Checking Account

b)

Certificate of Deposit (CD)

c)

Money Market Account

d)

Savings Account

6.

(a)   for savings is an example of a good savings strategy.

7.

Which type of account has a maturity date?

a)

Certificate of Deposit (CD)

b)

Savings Account

c)

Checking Account

d)

Money Market Account

8.

Which type of account increases the interest rate with greater balances?

a)

Certificate of Deposit (CD)

b)

High Yield Checking Account

c)

Tiered Savings Account

d)

Retirement Account

9.

A way to start saving money is to open a basic savings account and

a)

A High Interest Checking Account

b)

A CD

c)

A Retirement Account

d)

A No-Fee Checking Account

10.

Compound Interest is calculated on the (a)   rather than the principal. (You will have to calculate Compount Interest)

11.

The addition of interest to the principal sum of a loan or deposit is called (a)  

12.

Depository Institutions provide all of the following except

a)

Checking

b)

Insurance

c)

Savings

d)

Investments

13.

The FDIC insures deposits up to $ (a)   for EACH account opened in an FDIC Insured Depository Institution. NOT the sum of the balances of the accounts.

14.

What are the two main types of Depository Institutions?

(a)  

15.

What is the difference between a Bank and a Credit Union?

4 lines