Chapter 30: Savings Accounts

Liquidity

________ means the ability to quickly turn an investment into cash.

major purchases

People set up and maintain a savings plan for three reasons: to make ________, to provide for emergencies, and to have income for retirement.

Earnings

________ on savings can be measured by the rate of return, or yield.

Brokerage firms

________, which buy and sell stocks and bonds, offer a special type of savings account called a money market fund.

loans

Banks, savings and ________, and credit unions are all insured.

CD

A(n) ________ has a maturity date, which is when the money becomes available to you.

Principal

When ________ and interest are left in an account, it earns compound interest.

Inflation

________ is a general increase in the cost of goods and services.

brokerage firms

Banks, savings and loans, savings banks, credit unions, and ________ all offer several types of savings accounts.

People set up and maintain a savings plan for three reasons

to make major purchases, to provide for emergencies, and to have income for retirement