Worksheetsquizbowl 6
Total questions: 24
Worksheet time: 12mins
What is the process of setting aside money for future use instead of spending it immediately?
currency management
investing
savings
checking
What is the act of using money to purchase goods or services?
financial planning
commerce
trade
consumption
What is the term for the percentage of income that is not spent on consumption but instead saved?
amortization rate
savings rate
percentage rate
budgeting
What is one major benefit of saving money regularly?
financial strategizing
financial literacy
financial planning
financial security
What is the percentage gain or loss on an investment over a specific period?
rate of return
rate of investment
credit period
holding period return
What is the term for interest earned on both the initial deposit and previously earned interest?
compound interest
simple interest
amortized interest
holding period return
Why does compound interest benefit savers more than simple interest?
Because they don't get to withdraw it so it grows faster.
It doesn't. Interest is interest.
It grows money faster.
If you invest $1,000 at an annual interest rate of 5%, approximately how much will you have in 10 years if the interest is compounded annually?
$20,000
$1,628.89
$10,500.00
$16,288.90
What is the term to describe individuals who do not use banks or credit unions for financial transactions?
cash reliant
underserved
unbanked
informal
What is a major disadvantage of being unbanked?
higher fees for financial services
the inability to cash checks
the inability to retire comfortably
their private information isn't secured
What is a payday loan?
A short-term, high-interest loan due on the borrower’s next paycheck.
A short-term loan your bank gives you when you are signed up for direct deposit.
A loan you can take out against your paycheck.
A loan that places a lien on your car.
What is a pawn shop loan?
A long-term loan that requires a background check.
There is no such thing. Pawn shops will buy your items though.
A short-term loan that requires a bank account with direct deposit.
A short-term loan that requires an item as collateral.
Which is more liquid?
Real estate
CD
checking account
stocks
What is one benefit of being banked?
Access to safer and lower-cost financial services,
Access to bankers and stock brokers.
The ability to move your money around with an app on your phone.
Access to an account manager who monitors your deposits and withdrawals.
What is one way being unbanked makes saving money harder?
None of the above.
Because the unbanked always have to pay check cashing fees.
Lack of secure and
interest-earning accounts
It doesn't. Both the banked and the unbanked have fees to pay.
What type of bank account is primarily used for everyday transactions, like paying bills and making purchases?
checking account
savings account
401K
certificates of deposit
What type of bank account is designed primarily for storing money while
earning interest?
checking account
savings account
401K
certificates of deposit
What is considered the most liquid asset because it can be used immediately for transactions?
credit cards
mutual funds
cash
None of the above because everything can be turned into cash.
What is a benefit of keeping money in a savings account?
It is insured.
You can withdraw all your money when you need it.
It will earn interest so it's a form of an investment.
It earns interest and is insured.
What does FDIC insurance do for bank accounts?
Protects deposits up to $250,000 per bank per
account type.
Earns interest on your bank account, even when the market is down.
It constantly tracks the financial stability of your bank.
This alert then automatically redirects your funds into a special, government-backed account that is completely separate from the struggling bank.
What is a certificate of deposit (CD)?
A deposit account with a higher interest rate than a savings account.
Like an index fund, it's a pool of investors who share risk.
It is a short-term loan.
A deposit account with a fixed interest rate and specific maturity date.
What happens if you withdraw money from a CD before its maturity date?
Nothing.
You don't earn as much interest.
You lose your original deposit.
You pay an early
withdrawal penalty.
What type of bank account usually has a higher interest rate than a savings account, but requires a higher minimum balance?
An index fund
Money market account
A Certificate of Deposit
A checking account
What is the ability to quickly and easily convert an asset into cash without
losing value?
near money
liquidity
M1
asset liquidation
