WorksheetsCDs, IRAs & Other Savings Plans - Check for Understanding
Total questions: 10
Worksheet time: 50mins
What is a key difference between CDs and savings accounts?
Savings accounts provide periodic income
Savings accounts have fixed terms
CDs have fixed terms
CDs have fluctuating interest rates
What can affect CD rates?
The type of currency
The account holder's credit score
The size of the bank
The age of the account holder
What is a characteristic of a 401K plan?
It is a personal savings plan
It requires taxes to be paid on interest
It is employer-sponsored
It can be started by individuals
Which type of IRA allows for tax-deductible contributions?
Neither Roth nor Traditional IRA
Roth IRA
Both Roth and Traditional IRA
Traditional IRA
What is a feature of Roth IRAs?
They can be withdrawn at any time
They require mandatory withdrawals at age 70.5
They provide a tax shelter on contributions
They require taxes to be paid on interest
What do mutual funds consist of?
A portfolio of securities
Only bonds
Only common stock
Only money-market accounts
What is a characteristic of preferred stocks?
They have no voting rights in a company
They are not publicly traded
They are the last to receive dividends
They provide voting rights in a company
What is the purpose of emergency funds?
To pay off loans
To provide a cushion for unforeseen financial conditions
To increase tax liability
To invest in stocks
How does a low unemployment rate affect personal financial planning?
It increases the monetary supply
It has no effect on savings
It leads to a decrease in savings
It decreases the monetary supply
Savings accounts are like money market accounts because __________.
Check writing is authorized
They have a high minimum balance required
They have a low rate of return
They have a limited number of withdrawals
