Lesson3- savings and interest Flashcards
1
Q
Savings plan
A
Putting money aside for a purchase you plan to make in the future
2
Q
Investment plan
A
Putting money into things such as stocks and bonds for the purpose of making money
3
Q
Why people save
A
- Emergency needs
- Short term and long term goals
- Security & future needs
4
Q
When you deposit money in the bank, you are actually
A
lending the bank your money
5
Q
Examples of commercial banks in Malaysia
A
AmBank Berhad, CIMB Bank Berhad
6
Q
Interest is
A
money you receive over time for letting others borrow your money
7
Q
Interest rates are usually based
A
on a one-year time period
8
Q
Principal
A
Original amount of money you deposited
9
Q
Simple interest
A
Interest calculated only on the principal
10
Q
Compound interest
A
Interest calculated on the principal plus any interest already earned
