Question

question 9
2 pts
which of the following is an effective strategy for personal saving?
wait until the end of the month and save whatever is left in your checking account
save a certain percentage of each paycheck and deposit it directly into a savings account
cover all of your wants and needs and save whatever is left over
take out a payday loan so you can save before you receive your paycheck
question 10
2 pts
all of the following statements about bank accounts are true except...
if the bank is fdic - insured, your money, up to the fdic limit, is safe even if the bank fails
historically, savings accounts earn higher returns than investments in the stock market
money in a checking account is usually easy to access via atm, debit card or check
many banks pay interest on the money you deposit into your savings account

Explanation:

Question 9

• Waiting until the end of the month to save what's left is unreliable as expenses may deplete funds.
• Saving a percentage of each paycheck directly to savings is a disciplined, consistent strategy.
• Saving what's left after covering all wants/needs is risky as wants/needs may exceed income.
• Taking a payday loan to save is unwise due to high interest and debt risk.

• FDIC insurance protects deposits up to the limit if a bank fails, so that statement is true.
• Savings accounts typically have lower returns than stock market investments historically, so the statement "Historically, savings accounts earn higher returns than investments in the stock market" is false.
• Checking accounts are designed for easy access via ATM, debit card, or check, so that statement is true.
• Many banks do pay interest on savings accounts, so that statement is true.

Answer:

B. Save a certain percentage of each paycheck and deposit it directly into a savings account

Question 10