Flashcards › Chapter 10 Study Guide

____ involves an employer or financial institution placing you paycheck into a bank account. Direct Deposit Having money withheld from your paycheck and sent directly to your savings is a plan called ____ deduction. Automatic Payroll Interest drawn on the sum of the original principal plus interest is called ____ interest. Compound Money that is paid for the use of money is called ____. Interest A regular account at a credit union is called a(n) ____. Shared Investors buy and sell securities through a(n) ____, who works for a brokerage firm. Stockbroker Deposits kept in credit unions are insured by the ____. NCUA Federal insurance for depositors in commercial banks and savings and loans is provided by the ____. FDIC The greater the ____ you are willing to take, the higher the rate of interest you will recieve. Risk Moeny set aside for a specified length of time at a specified rate is called a(n) ____. Certificate of Deposit A type of savings plan available through broker or investment firms, which is not covered by the FDIC, is called a(n) ____. Money Market Account The capability of financial resources being readily converted to cash is called ____. Liquidity The amount of money you place in savings is called ____. Principal ____ is what you have left over to spend for what you wish (after your bills are pais each month). Discretionary Income The day on which a certificate must be renewed or cashed in is called the ____. Maturity Date When a CD is cashed before its maturity date, the depositor must pay a(n) ____ penalty. Early Withdrawl Whick of the following is not an example of along-term savings goal? Automobile Purchase Which of the following items is the most liquid? Regular Savings A type of savings plan whereby you set aside money at a financial institution for a set period is a ____. Certificate of Deposit Which of the following is not a benefit of direct deposit? Your money earns more interesst that in any other type of savings plan. Which of the following do banks usually offer? Numerous locations, drive-up windows, ATMs The FDIC insures a depositor's money up to $100,000 Of the following items, which pays the highest total interst when depostis are withdrawn at irregular times? Compounded daily The study guide questions for Chapter 10.