WorksheetsUnit 5 Savings Practice Test
Total questions: 13
Worksheet time: 13mins
Did you study the terms for types of accounts and institutions? It's a good idea!
Yes, studied the terms
No, I did not study the terms
Banks use your deposits to make loans to other people, then give some of their profits to you by paying interest to your accounts.
True
False
Which is not a reason you would use a savings tool?
To buy groceries
Prepare for emergencies like car repairs
Buy an expensive good and avoid debt, like a car
To build a nest egg to retire
Banks are insured up to $250,000 by _______. Credit Unions are insured by ________ also up to $250,000
Geico and Nationwide
The US Department of Treasury insures both institutions
National Credit Union Association; Federal Depository Insurance Corporation
Federal Depository Insurance Corporation; National Credit Union Association
What do online banks and credit unions have in common?
Both have no branches
Both tend to offer higher interest rates on savings tools.
Both tend to offer lower interest rates on savings tools
Both have branches
Kevin has 6 months of savings in a Savings Account that he uses for emergencies. He wants to make more money on his future savings and will not need to access this money. What would be the best type of savings tool for Kevin to use?
Another Savings Account
Money Market Account
Certificate of Deposit
Checking Account
Travis just got his first job and wants to buy a car. He thinks he will have enough money by the end of the year to get it. Travis is concerned about spending his small savings so he wants an account that has no ability to spend money from it, but doesn't want it stuck for any period of time. What account should he get
Certificate of Deposit
Money Market Account
Checking Account
Savings Account
Inflation is normal in growing economies
TRUE
FALSE
The concept where money typically loses value year over year, lessening your purchasing power, is referred to as...
Depreciation
Inflation
Savings Destruction
Invalidation
How does inflation effect purchasing power?
Inflation has a positive effect of purchasing power
Inflation has no effect on purchasing power
Inflation and purchasing power have no correlation to each other
Inflation has a negative effect purchasing power
How does inflation hurt retirees on fixed incomes more than other younger populations who are still earning pay checks?
Regular income earners' paychecks don't rise with inflation , whereas retired people's incomes do rise with inflation
Both retired peoples' incomes and regular income earners' pay checks both increase to outpace inflation
Retirees incomes' don't rise with inflation like others, whereas pay check earners continue to get raises that normally outpace inflation
All of the above
An account that keeps your money safe while gaining interest.
Savings
Checking
Mutual Fund
Stocks
