Economics Saving

1.

2 points

What is the best way to save for your retirment

An IRA

A CD

A savings account

A money Market account

2.

2 points

What is impulse buying?

buying a new house

buying the newest smart phone when you already have one

buying things you don't need on the spur of the moment

buying expensive items after saving for a year

3.

2 points

A CD is a way to save that requires you to

money cannot be touched for 15 years or longer

you need at least $15,000 to open a CD

leave the money in for a specific period of time

4.

2 points

What do MC Hammer, Evander Holyfield, Michael Vick, Mike Tyson have in common?

Celebrities who have $100 million or more in the bank

Millionaires who went bankrupt by not having a budget

They Paid themselves first by saving for emergencies

5.

2 points

What is the first question you should ask yourself when making a savings plan?

Should I pay myself first

How much can I spend

what is the interest rate on the CD

How much can I save

6.

2 points

What are the goals of saving for your future

financial freedom, emergencies, and comfortable retirement

to save for needs

to save for future purchases

To save over 5 million dollars

7.

2 points

You can start saving for your future at any age

True

False

8.

2 points

What is the most important thing to saving for your future?

Starting Early

earning a low interest rate on your savings

Saving money that you have left over after paying bills

buying items that you really do not need

9.

2 points

What is one reason you will want an emergency fund?

Illness, loss of job, life events

to save for a vacation

to buy a new appliance

to give money to your friends

10.

2 points

What are things in your budget you can cut to save?

Medical Bills

Wants from you budget like soda, movies, and cell phones

Needs from you budget like electricity, food, and clothes

Rent payments

11.

2 points

What is the best way to determine what amount you can save each month?

Make a budget and stick to it

save $10 each week for one year

pay for your wants first then save for your needs

Pay your bills first and save what is left over

12.

2 points

Why is it a bad idea to save money in a jar or a box at home

you earn no interest

you cannot withdraw money from the bank

your money is safer at home than in a bank

13.

2 points

your best plan is to create a budget to create wealth for your future

True

False

14.

2 points

It is recommended that your emergency fund have money for how long a period of time

8 to 12 months of income

3 to 6 months of income

2 years on income

1 to 3 months of income

15.

2 points

What is the difference between a CD and a Money Market Account

You can always withdraw money from a CD

You have to be 21 years old to open a Money Market Account

CD always pay higher interest

Money in a CD cannot be withdrawn without penalty

16.

2 points

You can put money in a CD for what lengths of time

1 month to 10 years

1 week to 1 year

6 months to 1 year

3 to 5 years

17.

2 points

There is no penalty for taking money from your CD to pay for an emergency

True

False

18.

2 points

What is compound interest?

interest paid to you on the interest you have already earned

interest that only can be earned on a CD

a higher rate of interest than a savings account

the money you get from a tax refund

19.

2 points

Suppose you have $2000 and want to go on a vacation in 1 year--what should you do with the money

spend the money and put the vacation on a credit card

put the money into a shoebox

Spend $500 and put the rest in a savings account

Put the money into a CD for a year

20.

2 points

What is the first step to "pay yourself first"

pay your bills first and what is left over you can save

Make a budget

add up all of you income

put 10% of your income in savings each week

21.

2 points

What is the best way to set up an emergency savings account?

Give money to you parents to save for you

Pay your bills first and save what is left over

have money automatically taken from your paycheck and saved

Stash money each week in your dresser

22.

2 points

What is interest that is paid on investments?

money only paid on an IRA

Money you get for saving or investing

money paid for putting money in a jar or shoebox at home

money that you pay for fees on saving

23.

2 points

Government savings bonds are a very safe investment

True

False

24.

2 points

When opening a savings account what is one thing you do not want?

a high interest rate

A monthly fee charged by the bank

FDIC Insurance

online access to you account

25.

2 points

What should you do with money you get from a relative?

Buy a new big screen TV

Put the money into a savings for your future

Spend some of the money

Spend all the money on wants