Start learning →

FINRA SIE Savings and Deposit Products — practice questions

Explore 16 free Savings and Deposit Products questions in FINRA SIE Finance. Open each question or exercise to read its content, reference answers and available explanation.

Practise Savings and Deposit Products with Quill →

Savings and Deposit Products questions and exercises with answers

Showing questions 1–16 of 16.

Deposits held at a federally insured financial institution carry insurance up to what minimum amount?Read the answer and worked solution →What does compounding mean for money sitting in a deposit account?Read the answer and worked solution →Money earning 2 percent doubles in roughly how many years under the Rule of 72?Read the answer and worked solution →Applying the Rule of 72 in reverse, what interest rate would double a balance in ten years?Read the answer and worked solution →What size of emergency savings fund is enough to cover many unexpected expenses?Read the answer and worked solution →In the SMART framework for setting a savings goal, what quality does the letter A stand for?Read the answer and worked solution →Saving $10 each month for six months toward holiday gifts reaches what total?Read the answer and worked solution →A co-payment of $32 falls due in four weeks. How much has to be set aside each week?Read the answer and worked solution →Moving part of each payment into savings as soon as income arrives is known as what?Read the answer and worked solution →A tax refund taken by direct deposit can be spread across how many accounts?Read the answer and worked solution →Take home pay is $8 per hour and a clothing item costs $80. How much working time does the item cost?Read the answer and worked solution →Eligibility for an ABLE account requires blindness or a qualifying disability that began before which birthday?Read the answer and worked solution →What term describes a public benefit whose eligibility depends on income and other resources?Read the answer and worked solution →What does the sponsoring organization contribute in a matched savings account?Read the answer and worked solution →Catch what builds savingsRead the answer and worked solution →Mark the savings termsRead the answer and worked solution →

Worked practice questions

Deposits held at a federally insured financial institution carry insurance up to what minimum amount?

  1. At least $250,000 per depositor
  2. At least $100,000 per depositor
  3. At least $500,000 per depositor
  4. At least $50,000 per depositor
Show answer and solution

Correct answer: A. At least $250,000 per depositor

1. Federal deposit insurance protects money held at an insured bank or credit union. 2. The floor of that protection is $250,000, so deposits are insured to at least that amount. 3. $100,000 and $50,000 sit below the stated floor, and $500,000 sits above it. _Source: FDIC Money Smart for Adults (September 2018), Module 5: Your Savings, section Deposit Insurance_

Open this question →

What does compounding mean for money sitting in a deposit account?

  1. Paying tax on the interest you earn
  2. Earning interest only on your deposits
  3. Earning interest on interest already earned
  4. Earning a fixed fee for each deposit made
Show answer and solution

Correct answer: C. Earning interest on interest already earned

1. Interest already credited to an account becomes part of the balance. 2. The next interest calculation runs on that larger balance, so interest earns interest. 3. That is compounding, and more frequent compounding produces more interest. 4. Earning interest only on deposits describes simple interest, not compounding. _Source: FDIC Money Smart for Adults (September 2018), Module 5: Your Savings, section Interest and Compounding_

Open this question →

Money earning 2 percent doubles in roughly how many years under the Rule of 72?

  1. About 24 years
  2. About 36 years
  3. About 72 years
  4. About 18 years
Show answer and solution

Correct answer: B. About 36 years

1. The Rule of 72 estimates a doubling time from a single interest rate. 2. Divide 72 by the rate written as a whole number. 3. Here that is 72 divided by 2, which is 36. 4. So the money takes about 36 years to double. 5. Answering 72 years uses the constant itself instead of dividing by the rate. _Source: FDIC Money Smart for Adults (September 2018), Module 5: Your Savings, section The Rule of 72_

Open this question →

How to practise

  1. Choose a Savings and Deposit Products question and try to work out your answer.
  2. Open the question to check the correct answer and read its worked solution.
  3. Continue in the app for bite-sized lessons, explanations and review with Quill. You can start without creating an account.

More Finance topics

Investment Products and RisksSaving and Investing BasicsSpending and Saving Plans