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Interest |
the amount owed for borrowing money |
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To earn as much interest as possible, you should open a savings account that earns _____ interest and has the ____ interest rate |
compound; highest |
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You are opening a savings account that earns compound interest. Which compounding frequency will earn you the MOST money? |
Compounding daily |
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Which is a type of savings vehicle? |
Certificate of Deposit and Money market account |
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Which is generally true about savings vehicles? |
people should evaluate different forms of savings vehicles based on their needs |
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Which savings vehicles usually require a high minimum balance? |
Certificate of Deposit (CD) |
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Which account will give you the LEAST access to your money ? |
Certificate of Deposit (CD) |
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The purpose of a budget is to: |
help you plan how you will spend the money you earn or receive |
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When it comes to saving money, what is a good rule of thumb? |
put aside money for savings each month |
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The 3 parts of the Federal Reserve System are the Reserve Banks, the Federal Open Market Committee (FOMC), and the: |
Board of Governors |
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Which is NOT one of the responsibilities of the Federal Reserve? |
establishing the federal budget |
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Which is a unique feature of credit unions? |
They are typically owned and run by their members and limit membership to certain people of groups |
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Which type of account is typically the MOST liquid? |
checking account |
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Savings accounts usually offer ____ interest rates than checking accounts. It is ____ to access your money in a savings account than in a checking account. |
Higher; harder |
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What part of a check is the LEAST important? |
memo line |
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Which represent typical account fees? |
ATM, Service, and Minimum balance fee |
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What’s the best strategy for avoiding ATM fees? |
Only use ATMs in your bank’s network |
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What’s the purpose of balancing or monitoring your checking account? |
To help you calculate how much money you have in your account |
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The best way to ensure the accuracy and safety of your accounts is to: |
monitor your online accounts regularly |
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Which payment types require you to pay upfront? |
Money order, cashier’s check, pre-paid card |
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Which statement comparing debit cards to credit cards is true? |
debit cards allow you to draw funds directly from your checking account |
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Which payment method typically charges the highest interest rates? |
Payday loans |
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What payment type can help you stick to a budget? |
Debit cards |
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