Investing
Why is a government bond a safer investment than a corporate bond?
The government will never go out of business
What is the federal government sponsored retirement plan called?
Social Security
The FED stands for what organization?
The Federal Reserve
What do banks do with our checking and savings deposits?
Loan it to other people
In a Fiat money system, how does the currency gets it value?
Because the people accept it
What is Diversification?
Lowering risk by spreading investments over different types of investments
What is the difference between state pension and a 401k?
The Federal Reserve prints our money, what is our money called? (its at the top of each bill)
Federal Reserve Note
Which type of deposit usually offers better interest rates?
Checking, Savings or Time Deposits
Time Deposit
What happens if money is pulled from a Time Deposit before it matures?
The customer loses the Interest earned and will probably be fined.
Which of these have the highest risk?
Mutual Fund, Corporate Stocks, Corporate Bonds or Treasury Funds
Corporate Stocks
Which IRA has the higher returns? IRA or Roth IRA
Neither, the only difference is one has it's fund drawn pre-tax and the other drawn post-tax
What is it called when the FED transfers the money from one bank to another when a check is deposited.
Check clearing
What organization protects deposits in a bank?
What is a Maturity Date?
When an investment has completed it's required time.
Which of these types of investments is the safest?
Treasury Fund, Corporate Stocks, Corporate Bonds or Crypto Currency?
Corporate Bonds
Which IRA are the funds drawn "post tax"
Roth IRA
Why is the Federal Reserve considered the bank's bank?
The Federal Reserve loans money to banks so they can loan it to customers.
If a bank doesn't have enough money to loan out to customers, where do they get additional funds?
Federal Reserve
Up to how much will the FDIC protect customer's deposits?
$250,000
Which of these is NOT a type of government bond?
Treasury Bills, Treasury Bonds, Treasury Fund or Treasury Notes?
Treasury Funds
IRA
Who produces coins in our currency system?
US Mint
How does savings help the economy?
It allows banks to loan money to people and companies.