Savings

1.) If you open a savings account and receive _____% in interest how long will it take to double your money?
a.) 2%
    36 years
b.) 4%
    18 years
c.) 4.5%
    16 years

2.) How do Certificates of Deposit work, and why would they be beneficial to your savings?
    Certificates of Deposits, or CDs, are a type of long-term savings that someone can open. This type of Savings account offers high interest rates and comes with a maturity date, so it does not allow easy access to the money for the customer. However, this can be beneficial to someone who does not need money now, but would like to have a good amount of money saved for down the road, such as college or retirement.

3.) Explain Mutual Funds:
    A Mutual Fund is a professionally managed collective investment that pools money from many investors to invest in stocks, bonds, and money markets. If there are any losses in a Mutual Fund, it is likely to be made up by gains in another area. Mutual funds have a low starting cost, around $50, and is much easier to deal with than Stocks or Bonds with a much lower risk than the others. They are very Convenient, in that you can buy them by mail, phone, Internet or through a professional broker.