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1.
Automated transfers of money between two accounts require that those accounts be from two different institutions.
False. You can set up an automated transfer between two accounts at the same institution.
2.
If you are averse to risk and you want to save money for a purchase three months from now, why would a savings account be a good choice to put your money into?
It has a low risk of loss. This may make it an ideal choice.
3.
A good way to determine how well you can afford to participate in an automatic savings plan is to find out where you are spending money needlessly in your budget.
True. This can become a new source of funds for you.
4.
Regular purchases of stock with money taken out of an existing account are an example of an _______.
Automatic investment plan. In this case, money is going toward buying investments.
5.
An advantage of using an automatic investment plan to fund a retirement account is that it can benefit from compounded earnings as it grows.
True. Most retirement plans benefit from compounded growth of earnings.