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WorksheetsPlaces to put your money review
Total questions: 38
Worksheet time: 19mins
What is a 529 account used for?
Retirement savings
Education expenses like tuition, housing, meal plan
Buying a house
Starting a business
To avoid paying a monthly bank account fee, you can use a student account which links to a ________ account.
friend's
parent's
business
savings
Which of the following is a characteristic of a high-yield savings account (HYSA)?
Lower interest rates
Interest rates that change depending on the Federal Reserve interest rate
Available at physical bank branches
No FDIC insurance coverage
Which grows faster? Simple interest or compound interest?
Simple interest
Compound interest
What is a debit card?
A card that links to your checking account and uses your money to make purchases
A card that allows you to borrow money from the bank
A card that only links to your savings account
A card that is used only for online shopping.
A 529 account is primarily used for ______.
Buying a car
Education expenses like tuition, housing, meal plan
Vacation
Medical expenses
Which of the following is a way to avoid paying a monthly bank account fee?
Maintain a minimum daily balance
Use a credit card
Withdraw cash frequently
Close the account.
Which of the following accounts have FDIC insurance? (Select all that apply)
Savings account
Government bonds
HYSA
CD (certificate of deposit)
Corporate bonds
What is the maximum amount guaranteed by the government under FDIC insurance if your bank fails (disregarding HYSA's)?
$100,000
$250,000
$500,000
$1,000,000
What is one key feature of a Certificate of Deposit (CD) that differentiates it from a checking or savings account?
No maturity date
Higher interest rate
Unlimited deposits
No penalties for early withdrawal
A Certificate of Deposit (CD) has a maturity date. What happens if you withdraw from it early?
You earn more interest
You are penalized (lose $)
You can deposit more money
You can change the maturity date.
FDIC insurance guarantees up to ______ by the government if your bank fails.
$2,500
$25,000
$250,000
$2,500,000
A debit card links to your checking account and uses ______ to make purchases.
borrowed money
your money
credit
a loan
You can only deposit into a Certificate of Deposit (CD) ______.
multiple times
once
anytime
twice
What is the most fundamental difference between a 401k and a 403b?
401k is for non-profit employers, 403b is for for-profit employers.
401k is for for-profit employers, 403b is for non-profit employers.
Both are for non-profit employers.
Both are for for-profit employers.
Which grows faster?
Compounding daily
Simple interest
A high-yield savings account (HYSA) typically ______.
is available at physical bank branches
is best place for an emergency fund
offers lower interest rates
lacks FDIC insurance coverage
Which of the following is a way to achieve a larger investment?
Lower initial deposit
Higher interest rate
Shorter time invested
Higher risk investments often have the possibility of greater reward.
True
False
Diversifying your investments means not putting all your eggs in one basket. Instead, you should invest in different _______.
companies
stocks
accounts
all of the above
When investing in individual stocks, index funds, and mutual funds, risk _______ with longer investments.
increases
decreases
remains constant
As retirement approaches, what should you do with your stock market investments (like mutual funds and index funds)?
Switch them out for individual stocks
Switch them out for CDs and bonds
Switch them out for crypto
Liquidate them directly to cash
What is the main benefit of diversifying your investments?
Increases risk
Reduces risk
Guarantees profit
Limits growth
What is the main difference between simple interest and compound interest?
Simple interest is calculated on the principal amount only, while compound interest is calculated on the principal and previously earned interest.
Simple interest is calculated on the principal and previously earned interest, while compound interest is calculated on the principal amount only.
Both simple and compound interest are calculated on the principal amount only.
Both simple and compound interest are calculated on the principal and previously earned interest.
Fill in the blank: A _______ account is typically by FDIC insurance.
Savings
Investment
Brokerage
Retirement
As retirement approaches, you should ______ your risk and increase your liquidity.
Lower
Increase
Maintain
Ignore
Which of the following statements is true regarding interest?
A) Interest is always beneficial.
B) Interest can be detrimental if you have debt.
C) Interest only applies to savings.
D) Interest is not related to credit cards.
Interest is not always beneficial because ______ is a thing.
savings
debt
investment
income
Why should an emergency fund be accessible and guaranteed?
To ensure high liquidity and no risk
To maximize returns
To invest in stocks
To buy real estate
Select all that apply. An emergency fund should be _______.
your first savings goal
invested
in a bank account
high-risk
Fill in the blank: Compound interest is calculated based on the principal amount and ________.
A) previously earned interest
B) future interest
C) only the principal amount
D) none of the above
What is inflation?
Increase in the value of money
Decrease in the value of money
Increase in the supply of goods
Decrease in the supply of goods
Inflation occurs when the value of money ______ over time, leading to goods and services becoming ______.
increases, less expensive
decreases, more expensive
remains the same, more expensive
Which of the following is NOT something you can do with an online banking app?
Track spending
Check account balances
Cook dinner
Deposit check by taking a picture
What happens to the risk when investing in individual stocks, index funds, and mutual funds over a longer time period?
A) Increases
B) Decreases
C) Stays the same
D) Doubles
Fill in the blank: With an online banking app, you can ________ by taking a picture.
Deposit a check
Write a check
Cook dinner
Send a letter
You should use your emergency fund to grow wealth.
True
False
It depends
Which of the following assets have FDIC insurance? (Select all that apply)
Mutual funds
Checking account
HYSA
529 savings plan
Crypto
