Life Skills

Question 1

What account often does NOT earn interest?

Answer 1

Checking Account

Question 2

What’s the #1 reason to keep your money in an insured financial instituition?

Answer 2

Your money will be safe.

Question 3

What does APY stand for?

Answer 3

Annual Percentage Yield

Question 4

How can you access money in a checking account?

Answer 4

Checks, Debit Card, and Withdrawals (All of the above).

Question 5

A savings account has

Answer 5

Variable interest, meaning the rate can change at any time.

Question 6

If you want to earn as much as possible, where is usually the best place to put your money?

Answer 6

A CD or share certificate.

Question 7

When something earns compound interest, it earns interest on…

Answer 7

The original amount deposited + any previously earned interest.

Question 8

What’s likely to happen when a risky borrower takes out a loan?

Answer 8

They’ll have a higher interest rate than a low-risk borrower.

Question 9

Can you withdraw money from a savings account?

Answer 9

Yes, you can withdraw money from a savings account at any time.