Exam 5: Cash or Liquid Asset Management

Because liquid assets can be turned into cash quickly and with little loss,they have little risk associated with them and therefore provide a low rate of return for the consumer.

One of the advantages of T-Bills is that they are exempt from federal taxes but subject to state income taxes.

One way to think of liquid assets is as a reservoir,with money moving in as wages are received and moving out as living expenses are paid.

Four banking conveniences are listed below.Which one is not typical?

Which of the following financial institutions were originally established to provide mortgage loans to depositors?

What is the name of an investment company that raises funds from investors,pools the money,and invests in stocks or bonds?

When using an ATM,keep in mind that

Electronic funds transfer applies to which of the following?

What is the FDIC?

When comparing returns on cash management investment alternatives,it is important to make sure that the rates you compare are all on the same tax basis.

List three cash management resources that are used to electronically transfer money.

Money market mutual funds provide attractive competition for bank deposits because

With online banking and EFT,many people don't really need checks anymore.If you seldom need a paper check for transactions,what option is available to you that may be cheaper than maintaining a checking account?

A traveler's check is a personal check that has been certified as being good by the financial institution on which it is drawn.

It is best for college students to wait and begin saving once they are "making more money."

A debit card is something of a cross between a credit card and a checking account.

Money Market Deposit Accounts enjoy one advantage over savings accounts found in commercial banks.This advantage is

The ________ converts interest rates compounded for different periods into comparable annual rates,allowing you to compare interest rates easily.

List the common deposit-type financial institutions.

Online banking simplifies cash management and budgeting for consumers.