Quick Check — five real-life decisions

1Amira needs $1,200 for an apartment deposit in 10 months. Where should that money sit?

• AIn a fund that holds hundreds of companies
• BIn an insured savings account
• CIn a coin her cousin says is “about to jump”
• DIn cash at home, so it is easy to reach

2Which sentence about an insured savings account is true?

• AIf the bank fails, your money is gone
• BIf the bank fails, the government pays you back — up to $250,000 per person, per bank
• COnly accounts over $10,000 are insured
• DCash at home is safer than an insured account

3Sam and Lee each put $100 a month into the same investments. Sam starts at 25, Lee at 35. At 55, who is likely to have more — and by how much?

• AAbout the same — Lee catches up
• BSam — about 30% more
• CSam — roughly double, because of 10 more years of growth
• DLee — he earns more by then

4Dev’s job matches 100% of what he puts in, up to 4% of pay. He puts in 2%. What is true?

• AHe receives the full match
• BHe leaves half of the match unused — raising to 4% collects all of it
• CHe must put in 10% to get any match
• DMatches are only for managers

5A video in a community chat promises “30% every month, guaranteed, no risk.” What is this?

• AA very good fund
• BNormal for investing
• CA scam — high return without risk does not exist
• DA type of savings account