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Consumer Economics > Chapter 10-Saving For The Future > Flashcards

Chapter 10-Saving For The Future Flashcards

0
Q

The day on which a certificate must be renewed or cashed in

A

Maturity date

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1
Q

Money that is paid for the use of money

A

Interest

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3
Q

A regular account at a credit union

A

Share account

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4
Q

The amount of money placed in savings

A

Principle

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6
Q

When CD is cashed before its maturity date, the depositor must pay

A

Early withdrawal penalty

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7
Q

Money set aside for a specific length of time at a specific rate

A

Certificate of deposit

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8
Q

The total value of all goods and services produced in 1 year

A

Gross domestic product

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9
Q

The capability of financial resources being readily converted to cash

A

Liquidity

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12
Q

What you have left over to spend as you wish (after your bills are paid each month)

A

Discretionary income

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13
Q

Involves an employer or financial institution placing your checks into a bank account

A

Direct deposit

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14
Q

Having money withheld from your paycheck and sent directly to your savings plan

A

Automatic payroll deduction

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15
Q

Deposits kept in credit unions are insured by

A

NCUA

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16
Q

Federal insurance for depositors in commercial banks and savings and loans by

A

FDIC

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17
Q

The greater the…….you are willing to take, the higher the rate of interest you will receive

A

Risk

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18
Q

When a CD is cashed before its maturity date, the depositor must pay a

A

Maturity date penalty

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19
Q

Emergencies, vacations, social events, and major purchases are examples of short-term needs

A

True

20
Q

The money you can save will depend on discretionary income, the importance of savings, needs and wants, and your willpower to forego present spending

A

True

21
Q

When you deposit money in a savings account, the financial institution pays you dividends for the use of that money

A

False

22
Q

Rate of return and annual percentage yield are the same

A

True

23
Q

Commercial banks are only state chartered

A

False

24
Q

When choosing a financial institution in which to place your savings, you should consider safety, liquidity, connivence, and purpose

A

True

25
Q

Deposits in savings and loan associations and commercial banks are insured by the FDIC

A

True

26
Q

If a depositor withdraws part or all of a certificate of deposit before its maturity date, there will be an early withdrawal penalty

A

True

27
Q

Financial institutions can offer interest compounded daily because of computers that make rapid communications possible

A

True

28
Q

Some ways to make saving easier include direct deposit and automatic deductions

A

True

29
Q

What is not an example of a long term savings goal

A

Automobile purchase

30
Q

What is most liquid

A

Regular savings

31
Q

A type of savings plan whereby you set aside most of your money at a financial institution for a set period

A

Certificate of deposit

32
Q

What is not a benefit of direct deposit

A

Your money earns more interest than in any other type of savings plan

33
Q

What do banks usually offer

A

ATMs, numerous locations, drive-up windows

34
Q

The FDIC insures a depositor’s money up to

A

$250,000

35
Q

What pays highest total interest when depositors are withdrawn at irregular times

A

Compound daily

36
Q

Parts of a GDP

A

Consumer spending, Business Investment, Government spending, Net foreign trade

37
Q

Goals in economy

A

Economic growth, low unemployment, low inflation

38
Q

The actual interest rate an account pays per year, with compounding included

A

Annual percentage yield

42
Q

Interest drawn on the sum of the original principal plus interest

A

Compound interest

43
Q

A type of savings plan available through broker or investment firms, which is not covered by the FDIC

A

Money market account

44
Q

Investors buy and sell securities through…, who work for a brokerage firm

A

Stockbroker

Consumer Economics (10 decks)

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