Presentation on theme: "True/False Credit unions do not provide insurance for their depositor’s savings."— Presentation transcript:
1True/False Money Compounded quarterly earns more total interest than money compounded annually?
2True/False Credit unions do not provide insurance for their depositor’s savings.
3TRUE/False Early withdrawal penalties are charged against certificates of deposit for withdrawals prior to maturity.True
4True/False Credit unions are for-profit organizations.
5True/False Almost all commercial banks have insurance with the FDIC.
6True/False Your goals for saving money will affect your choice of a financial institution.
7True/False The chief reason for saving money is to provide for future needs.
8True/False Short-term needs include things such as home ownership, education of children and retirement.False
9True/False Discretionary income is income you have left to spend after the bills have been paid.
10True/False A regular savings account pays less interest than a certificate of deposit.
11True/False You may be charged a service fee if you make more than a maximum number of withdrawals from your regular savings account in one month or if your balance falls below a certain minimum.True
12True/False Certificates of deposit are less liquid than regular savings accounts.
13True/False Convenience is a reason why many people choose a financial institution.
14True/False Money market accounts are subject to early withdrawal penalties.
15True/False A money market fund is insured by the FDIC for a maximum of $250,000.
16True/False Liquidity is a major advantage to regular savings accounts.
17True/False Savings and loan associations usually offer full checking account services.
18True/False Loan consolidation means combining all previous student loans into one large loan.
19True/False The law requires all financial institutions to tell consumers the annual percentage yield on their accounts.True
20True/False Commercial banks offer only a few banking services and are not competitive.
21Money deposited to earn interest is called _______. Principal
22The date on which a certificate of deposit is due is called the _______. Maturity Date
23A method to make regular saving easier is automatic ______ deduction. Payroll
24You will receive the greatest gain on your principal if interest is compounded _______. Daily
25Certificate of Deposit If liquidity is important to you, which of the following savings options would you not want to consider?Certificate of Deposit
26A savings account at a credit union is called a _______. Share Account
27Money left over after you have paid bills is called ________. Discretionary Income
28A stockbroker works for which type of financial institution? Brokerage Firm
29Which of the following is not a short-term need Which of the following is not a short-term need? (A) Unemployment (B) Weekend Trip (C) Child’s Education (D) Automobile RepairChild’s Education
30Which of the following is a condition determining how much money you will save? (A) Amount of discretionary income (B) Importance of savings (C) Anticipated wants and needs (D) All of these(D) All of these
31Which of the following is not a long-term need Which of the following is not a long-term need? (A) New Car (B) Home Ownership (C) Retirement (D) Investment Plans(A) New Car
32Definition: When you employer puts your paycheck into your bank account. Direct Deposit
33Definition: Money paid for the use of money. Interest
34Definition: Emergencies, weekend trips, and social events. Short-term Need
35Definition: The quality of being easily converted to cash. Liquidity
36Definition: Income left over after the bills have been paid. Discretionary Income
37Definition: Insurance that covers deposits in commercial banks. FDIC
38Definition: The date on which a time certificate must be renewed or canceled and a new one purchased.Maturity
39Definition: A rate that includes compounding. Annual Percentage Yield
40Definition: Setting aside money to meet future needs. Saving
41Definition: The amount of money deposited by a saver. Principal
42Definition: Interest paid on the principal plus interest already earned. Compound Interest