ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -There are benefits to keeping your money in a financial institution. These benefits include safety, growth, convenience, security, financial future, and cost. There are three main types of financial institutions: banks, credit unions, and savings and loans.
Detailed explanation-2: -Saving is the portion of income not spent on current expenditures. In other words, it is the money set aside for future use and not spent immediately.
Detailed explanation-3: -You’ll earn interest every day, but it is usually paid back into your savings account monthly, although some accounts may pay quarterly or even annually. If unsure, your provider will be able to tell you how often interest is paid on your account.
Detailed explanation-4: -Both savings accounts and money market accounts allow you to deposit money and earn interest. Unlike savings accounts, however, money market accounts often come with transactional features-such as the ability to write a limited number of checks and make bill payments each month.