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15 Cards in this Set
- Front
- Back
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A demand deposit account designed for the accumulation of money in a safe place for future use is a(n)... |
Savings account |
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A sum of money set aside on which interest is paid is called... |
Principal |
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Interest computed on principal once during a certain time period is... |
Simple interest |
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Interest earned on both principal and previously earned interest is... |
Compound interest |
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A fixed amount set aside on a regular basis over time is a(n)... |
Annuity |
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A quick formula for computing how long it will take to double money invested at a given interest rate is the... |
Rule of 72 |
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A type of savings account that earns the market rate of interest on the money deposited is the... |
Money market account |
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A time deposit that pays a fixed rate of interest for a specified length of time is a... |
Certificate of deposit (CD) |
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A discount bond issued by the federal government that pays a guaranteed minimum rate of interest is a... |
U. S. savings bond |
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A bond's future value as stated on its face is... |
Maturity value |
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The higher the rate of interest, the ________ money the account earns. |
More |
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Principal (P) x Rate (R) x Time (T) = |
Interest (I) |
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Are interest earnings taxable when they are earned? |
Yes |
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Interest rates are usually given in... |
yearly rates |
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Having a _______________ helps you be prepared for emergencies and other unplanned spending. |
Savings account |
