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10 Cards in this Set
- Front
- Back
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Interest is... |
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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John just opened a savings account and wants to maximize the amount of interest he earns. Which of the following actions would enable him to earn MORE interest? |
Selecting an account with a high interest rate and leaving his money in the account for long period of time |
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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 of the following is a type of savings vehicle? |
Certificate of Deposit and Money Market Account |
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Which of the following is generally true about savings vehicles? |
People should evaluate different forms of savings vehicles based on their needs |
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Which of the following savings vehicles usually requires a high minimum balance? |
Certificate of Deposit (CD)
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Which of the following accounts 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 |
