1. True/False Money Compounded quarterly earns more total interest than money compounded annually?

2. True/False Credit unions do not provide insurance for their depositor’s savings.

3. TRUE/False Early withdrawal penalties are charged against certificates of deposit for withdrawals prior to maturity.
True

4. True/False Credit unions are for-profit organizations.

5. True/False Almost all commercial banks have insurance with the FDIC.

6. True/False Your goals for saving money will affect your choice of a financial institution.

7. True/False The chief reason for saving money is to provide for future needs.

8. True/False Short-term needs include things such as home ownership, education of children and retirement.
False

9. True/False Discretionary income is income you have left to spend after the bills have been paid.

10. True/False A regular savings account pays less interest than a certificate of deposit.

11. True/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

12. True/False Certificates of deposit are less liquid than regular savings accounts.

13. True/False Convenience is a reason why many people choose a financial institution.

14. True/False Money market accounts are subject to early withdrawal penalties.

15. True/False A money market fund is insured by the FDIC for a maximum of $250,000.

16. True/False Liquidity is a major advantage to regular savings accounts.

17. True/False Savings and loan associations usually offer full checking account services.

18. True/False Loan consolidation means combining all previous student loans into one large loan.

19. True/False The law requires all financial institutions to tell consumers the annual percentage yield on their accounts.
True

20. True/False Commercial banks offer only a few banking services and are not competitive.

21. Money deposited to earn interest is called _______.
Principal

22. The date on which a certificate of deposit is due is called the _______.
Maturity Date

23. A method to make regular saving easier is automatic ______ deduction.
Payroll

24. You will receive the greatest gain on your principal if interest is compounded _______.
Daily

25. Certificate of Deposit
If liquidity is important to you, which of the following savings options would you not want to consider?
Certificate of Deposit

26. A savings account at a credit union is called a _______.
Share Account

27. Money left over after you have paid bills is called ________.
Discretionary Income

28. A stockbroker works for which type of financial institution?
Brokerage Firm

29. Which 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 Repair
Child’s Education

30. Which 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

31. Which 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

32. Definition: When you employer puts your paycheck into your bank account.
Direct Deposit

33. Definition: Money paid for the use of money.
Interest

34. Definition: Emergencies, weekend trips, and social events.
Short-term Need

35. Definition: The quality of being easily converted to cash.
Liquidity

36. Definition: Income left over after the bills have been paid.
Discretionary Income

37. Definition: Insurance that covers deposits in commercial banks.
FDIC

38. Definition: The date on which a time certificate must be renewed or canceled and a new one purchased.
Maturity

39. Definition: A rate that includes compounding.
Annual Percentage Yield

40. Definition: Setting aside money to meet future needs.
Saving

41. Definition: The amount of money deposited by a saver.
Principal

42. Definition: Interest paid on the principal plus interest already earned.
Compound Interest