WorksheetsPBMF 19.2 Savings & Investments
Total questions: 18
Worksheet time: 23mins
A(n) (a) - (b) savings account is a type of demand deposit account that pays interest and allows for regular deposits and withdrawals. They have no set maturity date and withdrawals can be made at any time.
interest-bearing savings account
A (a) savings account is an account that pays a higher interest rate than basic savings accounts. To get the higher rate, however, the bank requires a (b) initial deposit and a (c) minimum balance.
A money market account (MMA) is a type of savings account that requires a higher minimum balance than a regular savings account, but offers a higher interest rate. The minimum balance in a money market account is usually $500, but can be as high as $10,000. Some MMAs pay a flat rate of interest regardless of the balance. Others use a tier structure that pays a higher interest rate on accounts with higher balances. Most MMAs offer check-writing privileges. However, there is a limit on the number of checks that can be written per month. There is also a minimum amount for each check, which can be as much as $500.
What is one key difference between a money market account (MMA) and a regular savings account?
MMA offers lower interest rates
MMA has lower minimum balance requirements
MMA has more flexible withdrawal options
MMA requires a higher minimum balance
What is the usual minimum balance in a money market account?
$100
$500
$1000
$2000
What is the minimum amount for each check in the Money Market Account (MMA)?
$100
$250
$500
$750
A ___________ is a savings account that requires a fixed deposit amount for a fixed period of time, or term.
Flexible deposit
Adjustable deposit
certificate of deposit (CD)
Variable deposit
In order to get the highest interest earnings, money must be left in a CD until the term is up. This term may be as little as (a) or as much as (b) .
____ is purchasing a financial product or valuable item with the goal of increasing wealth over time in spite of possible loss.
Investments (a) insured and are considered financial (b) .
A _____ is a plan to develop investment growth. It is an important step in meeting long-term goals and achieving financial security.
personal investment plan
Order the steps of creating an investment plan.
7
6
5
4
3
2
1
A ___ is a share in the ownership of a corporation.
A ____ is a type of security issued by a corporation, government, or other organization that pays interest over time.
bond
mutual fund
savings account
stock
US government bonds are issued by the (a) and are the (b) bonds that can be bought.
Match each valuable good with the correct definition.
Purchased for the pleasure of ownership and because they are expected to increase in value
Collectibles
Purchased from banks and dealers in the form of pieces of jewelry, coins, or bars
Precious Metals
Collected as loose stones or as pieces of jewelry
Gemstones
A (a) is an employer-sponsored retirement plan. The plan is funded with (b) salary contributions.
A (a) IRA is an individual retirement account that allows individuals to contribute pre-tax income to investments that will grow tax deferred. Contributions to a traditional IRA are tax deductible.
A (b) IRA is an individual retirement account in which individuals contribute after-tax income and qualified withdrawals are not taxed. Contributions to a Roth IRA are made with after-tax earnings.
____ consists of the assets and liabilities a person leaves when he or she dies.
A possession
An inheritance
An estate
A property
(a) is the active management of a person's estate with directives for managing and distributing them when the owner dies.
An (a) is a person appointed to carry out the terms outlined in a will. A (b) is a legal document stating a person’s wishes for his or her estate after death.
