Banking & Saving

Question 1

This organization insures deposits at BANKS up to $250,000

Answer 1

FDIC

Question 2

This organization insures deposits at CREDIT UNIONS up to $250,000

Answer 2

NCUA

Question 3

True/False: Savings accounts are designed to protect your principal.

Answer 3

True. Savings accounts can’t lose money like investing in the stock market.

Question 4

A savings strategy where you send money to your savings account before paying your bills

Answer 4

PYF (Pay Yourself First)

Question 5

A type of savings vehicle where your money is “locked” for a period of time in exchange for a higher interest rate

Answer 5

CD (Certificate of Deposit)

Question 6

True/False: The Federal Reserve is the US Central Bank.

Answer 6

True. Also known as “The Fed”

Question 7

The Federal Reserve’s main tool for controlling inflation:

Answer 7

Setting interest rates

Question 8

The original amount saved or invested is called:

Answer 8

Principal

Question 9

What is compound interest?

Answer 9

Also known as “interest on interest” because it pays you interest on your principal AND on previously earned interest.