You are opening a savings account that earns compound interest. Which compounding frequency will earn you the MOST money?
A.) Compounding 1 time a yearB.) Compounding 4 times a yearC.) Compounding monthlyD.) Compounding daily*
Tamara has $500 she is looking to save for a class trip. She wants to earn the most possible interest and will not need access to her money for a full year. Which type of savings account will be best for Tamara?
A.) a charge for lending money to a bankB.) the amount owed for borrowing money*C.) the amount added into your savings when opening a bank accountD.) a charge for the convenience of accessing money stored in your bank account
A.) help you plan how you will spend the money you earn or receive.*B.) stop you from spending too much money.C.) increase the balance of your savings accountD.) tell you how much you owe the government in taxes
A.) Savings vehicles are only useful for long-term investments.B.) People should evaluate different forms of savings vehicles based on their needs.*C.) Savings vehicles are never insured.D.) All of the above
Joy is taking out a car loan which she will pay back with interest. Which option will require her to pay the lowest amount in interest?
To earn as much interest as possible, you should open a savings account that earns _______ interest and has the ______ interest rate.
You are watching: What is the typical relationship between time and interest rate? a
A.) Shorter time period usually equals higher interest rates.B.) Longer time periods usually have no affect on interest rates.C.) Longer time period usually equals higher interest rates.*D.) Shorter time periods usually have no affect on interest rates.
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Your friend is overspending and in need of a budget. What type of expense should they reduce next month?
A.) Going to the movies with friends.*B.) Purchasing medicine for their asthma.C.) Transportation to get to and from school.D.) Buy fewer school books.
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A.) Keep most of your savings in your checking accountB.) Put aside money for savings each month*C.) Choose the savings account with the lowest interest rateD.) Put anything you can”t afford on your credit card
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?
A.) Selecting an account with a high interest rate.B.) Leaving his money in the account for long period of time.C.) Transferring money into his checking account each month.D.) Both A & B*
Which type of account typically has very high liquidity, low or no interest, and low minimum balance?
A.) Certificate of Deposit (CD)B.) Checking Account*C.) Investment Retirement Account (IRA)D.) Money Market Account
Jorge has $300 for work he performed. He expects to spend the money in the next few weeks to buy a new bike. Which type of account will be best for Jorge?
Anthony is deciding between different savings accounts at his bank. He has four options, based on how frequently interest compounds. Which should he choose if he wants the best rate of return on his interest?
A.) Budget for fixed expenses before flexible expenses.B.) Budget for unexpected events in before expected expenses.C.) Budget for your needs before your wants.*D.) Budget for expected events before unexpected expenses.
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