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Savings Unit Exam REVIEW

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

Why do people want to save money? Select the correct reasons.

a)

Home, emergencies, travel, college

b)

Snack, travel, emergencies, home

c)

To retire, snack, home, college

d)

Emergencies, snack, travel, to retire

2.

What might people choose to do when they get old?

a)

Work at a factory

b)

Have kids

c)

Retire

d)

All of the above

3.

How does having savings make a person feel?

a)

Nervous

b)

Secure

c)

Angry

d)

Confused

4.

What is the term used when the economy is shrinking and more people do not have jobs?

a)

Recession

b)

Celebration

c)

Christmas

d)

Inflation

5.

Which of the following are types of transactions? Select all that apply.

a)

Deposit, withdraw, check, electronic transfer

b)

Change, coin purse, deposit, withdraw

c)

Withdraw, electronic transfer, coin purse, check

d)

Deposit, change, electronic transfer, coin purse

6.

When you put money into a bank account, it can:

a)

Get lost

b)

Grow

c)

Got stolen

d)

Disappear

7.

What type of saving has the most risk, but can grow a lot?

a)

Bond

b)

Checking account

c)

Stocks

d)

Savings account

8.

How much interest do you typically earn with a checking account?

a)

High

b)

Zero

c)

Variable

d)

Moderate

9.

What does it mean when your money is liquid?

a)

Available

b)

It is wet

c)

Not available

d)

Frozen

10.

True or False: A savings account, checking account, and money market account are all accounts where your money is liquid.

a)

True

b)

False

11.

Which account is best for everyday spending and easy access to your money?

a)

Checking account

b)

Bond

c)

Retirement account

d)

Certificate of deposit

12.

What is one benefit of saving money in a savings account?

a)

It earns interest

b)

It loses value quickly

c)

It is used for shopping only

d)

It cannot be accessed

13.

Which of the following is a reason people might withdraw money from their savings?

a)

To keep it in a coin purse

b)

To lose money

c)

To avoid interest

d)

To pay for an emergency

14.

Which account usually offers the highest interest rates?

a)

Savings account

b)

Money market account

c)

Checking account

d)

Certificate of deposit

15.

What is one reason to open a savings account instead of keeping cash at home?

a)

It cannot be used for emergencies

b)

It is safer and can earn interest

c)

It loses value faster

d)

It is harder to access

16.

Which of the following is NOT a common reason to save money?

a)

College tuition

b)

Emergencies

c)

Vacations

d)

Buying snacks daily

17.

Which of the following is a feature of a money market account?

a)

Higher interest rates than checking accounts

b)

No interest earned

c)

Used only for shopping

d)

Cannot withdraw money

18.

What is the main purpose of an emergency fund?

a)

To pay for daily coffee

b)

To go on vacation

c)

To cover unexpected expenses

d)

To buy snacks

19.

True or False: Keeping all your money in cash at home is safer than in a bank account.

a)

True

b)

False

20.

Which individual would be BEST prepared for an unexpected expense?

a)

Kim is most prepared because she has the highest income.

b)

Scott is most prepared because he has the lowest monthly expenses.

c)

Nikki is most prepared because she is saving more money each month.

d)

Kim is most prepared because she has the highest monthly expenses.