Free Practice Quiz Question List

04 Saving and Emergency Funds Online Quiz Questions

Use this free practice quiz with 20 questions to review 04 Saving and Emergency Funds, test your knowledge, and prepare for your next test or exam.

20 questions

True or false

1 point

A household should normally use its emergency fund to pay an annual insurance bill that it knew was coming.

A
True
B
False

Choose one

1 point

A goal requires saving $1,200 over 12 months. Before interest, about how much should be saved each month?

A
$10 per month
B
$100 per month
C
$120 per month
D
$1,200 per month

Fill in the blank

1 point

Complete the savings estimate: ÷ = amount to save each period.

Written response

1 point

What do you call money reserved for unplanned expenses or a loss of income?

Choose one

1 point

Someone wants a place for emergency savings that is usually accessible. Which product is the most suitable starting point, while still requiring them to check fees and transfer timing?

A
A savings account
B
A certificate of deposit with a maturity after the emergency could occur
C
A volatile investment
D
A Treasury bill that would need to be sold to obtain funds

True or false

1 point

For a goal expected within about five years, it is generally sensible to favor savings products with stable value and suitable access over investments that could fall in price.

A
True
B
False

Written response

1 point

You need $1,800 for a planned goal in 18 months. If you save the same amount each month and ignore interest, how much should you save monthly?

Choose all

1 point

When comparing savings products for a goal, which details are useful to check when assessing earnings, costs, and access? Select all correct answers.

A
Annual percentage yield (APY)
B
The color of the provider’s logo
C
Fees
D
Whether the rate can change
E
How quickly funds become available

Fill in the blank

1 point

A Treasury bill is a , not an FDIC-insured deposit.

Choose one

1 point

A saver knows they will need money for a planned purchase on a specific date and is considering a certificate of deposit. Which approach best accounts for the CD’s main trade-off?

A
Open a CD with a maturity date later than the planned purchase
B
Choose a CD whose maturity date matches the planned need, after checking early-withdrawal terms
C
Put the money in a volatile investment to seek higher returns
D
Choose a product without considering when the money will be needed

Written response

1 point

What is the name of the bank deposit account that should not be confused with a money market mutual fund?

Choose all

1 point

Which products are generally FDIC-covered deposits when held at an FDIC-insured bank? Select all correct answers.

A
A savings account at an FDIC-insured bank
B
A money market deposit account at an FDIC-insured bank
C
A Treasury bill
D
A CD at an FDIC-insured bank
E
A stock

Choose one

1 point

A household needs its emergency reserve to be available quickly after an unexpected repair. Which choice best fits that need?

A
Put all the emergency money in Treasury bills because they are FDIC-insured deposits
B
Put all the emergency money in a volatile investment because it may earn more
C
Keep emergency money in a safe, readily accessible savings account
D
Choose a product solely because it advertises a higher rate

Open ended

1 point

A household has limited savings and wants to prepare for unexpected costs. Explain how it could set an initial emergency-fund target, decide how to build toward a suitable reserve, and choose where to keep the money.

Choose one

1 point

Which expense is the clearest reason to use an emergency fund?

A
An annual insurance bill that is due next month
B
An urgent car repair that was not planned
C
A vacation that the household has been planning
D
A regular monthly utility bill

Written response

1 point

A savings goal requires $\$900$ , and you plan to save evenly over 6 months before interest. How much should you contribute each month? Enter a number of dollars.

True or false

1 point

A Treasury bill may be less convenient than a savings account for an immediate emergency because selling it before maturity requires arranging a sale through a bank, broker, or dealer.

A
True
B
False

Choose one

1 point

You are saving for a purchase with a known date and do not expect to need the money before then. Which approach best accounts for a certificate of deposit's terms?

A
Choose the longest term available, since a longer CD is always better for a planned purchase.
B
Choose a CD without considering its maturity, because funds are always immediately accessible.
C
Match the CD's maturity date to when the money will be needed.
D
Use a CD for the emergency fund because it guarantees penalty-free withdrawals.

Choose one

1 point

You expect to use savings for a goal in about three years. Which approach generally best fits this time horizon?

A
Favor savings products with stable value and suitable access.
B
Put the money entirely in volatile investments to seek the highest possible return.
C
Choose an investment that cannot be accessed until after the goal date.
D
Ignore the goal date because investment losses always recover quickly.

Choose one

1 point

A household is deciding how large its emergency fund should eventually be. Which approach is best supported?

A
Set the same target for every household, regardless of income or expenses.
B
Base the target only on the interest rate of the savings account.
C
Consider essential expenses, income stability, insurance deductibles, and household needs.
D
Keep only enough to cover a predictable annual bill.