Personal Finance; Modules 1 – 4

Fill in the blanks:If you want to earn as much as possible, you open a savings account that earns ___________ interest and has the ______________ interest rate. Compound; highest
Interest The amount owed for borrowing money
What is generally true about savings vehicles? People should evaluate different forms of savings vehicles based on their needs
Which account gives you the least access to your money? Certificate of Deposit (CD)
What is the purpose of a budget? To help you plan how you will spend the money you earn or receive
Which savings vehicles usually requires a high minimum balance? Certificate of Deposit (CD)
Two examples of savings vehicles Certificate of Deposit & Money Market Account
Rule of thumb for saving money Putting aside money for savings each month
compounding frequency that will earn you the most money Daily Compounding
Financial Institution the typically comes has membership requirements Credit Union
Most liquid type of account Checking account
Which of the following is NOT one of the responsibilities of the Federal Reserve?A) maintaining a stable banking system B) Establishing Federal budget C) Setting nation’s monetary policyD) Supervising reserve banks B) Establishing federal budget . . . Is NOT one of the responsibilities of the Federal Reserve
LEAST important part of check Memo line
Which type of account typically has the highest interest rate? Certificate of Deposit (CD)
Typical Account Fees ATM fee, Minim,um balance fee, service fee, etc.
Highest fee Overdraft fee
Fill in the blank:Savings accounts usually offer ______________ interest rates than checking accounts. It is ______________ to access your money in a savings account than in a checking account. Higher; harder
Three parts of Federal Reserve Reserve Banks, Federal Open Market Committee(FOMC) and Board of governors
Primary Responsibility of Federal Reserve Bank Establish Monetary Policy
Credit card balance The amount of money you still owe to the credit card company.

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