Financial Institutions and Savings Vehicles Quiz

Credit union is a financial institution that provides financial services to its members.

The primary purpose of a savings account is to earn interest on the funds deposited into the account.

Library is not a financial institution; it is a repository of books and information.

A Certificate of Deposit (CD) is a savings vehicle with a fixed interest rate and a specified maturity date.

The main function of an investment bank is to facilitate the buying and selling of securities.

A mutual fund pools funds from multiple investors to invest in a diversified portfolio of assets.

The purpose of a 401(k) retirement account is to save for retirement with tax advantages.

A money market account is characterized by high liquidity, allowing easy access to funds.

A feature of a traditional IRA is that contributions are tax-deductible.

The FDIC's purpose is to provide insurance for bank deposits, ensuring the safety of deposited funds.

A feature of a money market fund is high liquidity, providing easy access to invested funds.

The purpose of a 529 plan is to save and pay for education expenses.