TrueFalse Money Compounded quarterly earns more total interest

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Money deposited to earn interest is called _______. Principal

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

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

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

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

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

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

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

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

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

Which of the following is not a longterm need? (A) New Car (B) Home Ownership (C) Retirement (D) Investment Plans (A) New Car

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

Definition: Money paid for the use of money. Interest

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

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

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

Definition: Insurance that covers deposits in commercial banks. FDIC

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

Definition: A rate that includes compounding. Annual Percentage Yield

Definition: Setting aside money to meet future needs. Saving

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

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