Exam (elaborations)
HSA Exam SG – Questions With Solutions
- Course
- Institution
HSA Exam SG – Questions With Solutions
[Show more]
Seller
Follow
Studyhall
Reviews received
Content preview
HSA Exam SG – Questions With SolutionsIf your pet has a medical condition and you think you may have some
surprise vet bills inthe next year? Correct Ans - A savings or money
market account, but NOT a CD
How important is the liquidity of your funds in this example? Correct
Ans - Important. Funds need to be accessible without penalty.
If you want to buy a plane ticket to celebrate your grandparents' 50th
wedding anniversary in Hawaii in five years? Correct Ans - The best
rate is likely with a long-term CD
What if you think interest rates will rise in the next year? Correct Ans -
A shorter-term CD of six months or one year, then reinvest
If you want to buy a new bicycle sometime in the next six months?
Correct Ans - A savings account
If you want to have some extra money for occasional trips to the mall?
Correct Ans - A savings account is probably the best option, as funds
are easily available
True or false: Principal is the amount of money with which you open a
savings account. Correct Ans - true
Describe the difference between a fixed and variable interest rate.
Correct Ans - A fixed rate does not change, a variable rate will fluctuate
based on market conditions or other factors.
True or false: Liquidity refers to how accessible your money is to you.
Correct Ans - true
Which typically earns more interest, a savings account or a CD? Correct
Ans - CD
True or false: A good rule of savings is "pay yourself last." Correct Ans
- false
, What is APR? Correct Ans - Annual Percentage Rate, the interest
rate on a given account.
What is the rule called that helps you determine how long your money
takes to double in savings? Correct Ans - Rule of 72
List three common reasons people save money. Correct Ans - To
plan for a specific goal, save for a long term future goal, or be prepared for
the unexpected
True or false: If you need constant access to your funds, a traditional
savings account is a good savings option. Correct Ans - true
True or false: A certificate of deposit (CD) is a good savings option if you
can leave money untouched
for an extended period of time. Correct Ans - true
If you put $100 in a savings account with a 3% APR for 2 years?
Correct Ans - $100 x .03 = $3 + $100 = $103
$103 x .03 = $3.09 + $103 = $106.09
True or false: Discretionary spending pays for both fixed and variable
expenses. Correct Ans - false
A monthly bus or train pass is an example of a ___________ expense.
Correct Ans - fixed
True or false: The main purpose of a budget is to slow down spending.
Correct Ans - false
Groceries are an example of a ___________ expense. Correct Ans -
variable
Experts recommend saving at least what percentage of your income?
Correct Ans - 10%
True or false: A budget can usually help you spend less and save more.
Correct Ans - true
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Studyhall. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67232 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now
Recently viewed by you
