AGLS Exam 2 - FLASHCARDS - Saving and Banking
What are liquid assets?
Cash and investments that can be easily converted to cash. Liquidity is crucial to short term goals and intermediate goals. Good for emergencies. Potential emergencies: getting fired, natural disasters, having children
What is cash management?
Deciding how much to keep in liquid assets and where to keep it
What is the recomended liquidity for prodessionals?
3 to 6 months of expenses
What is the recomended liquidity for college students?
$1,000
What type of account has limited transactions?
Checking account
What type of account has low to no interest rate?
Checking account
What type of account uses a debit card?
Checking account
What type of bill paymernt does a checking account have?
Online bill payment
What account has rates similar to a savings account?
Money market
What account uses ATM account and limited checks?
Money market
What account has limited certificates of deposit per month?
Money market
What account has minimum holding time?
Savings account
What account has minimum balance?
Savings account
What account has low interest rate?
Savings account
What account has monthly/annual fees?
Savings account
What account has minimum deposits?
Cetrificate of deposit
What account has a high interest rate?
Certificate of deposit
What account has an early withdrawral penalty?
Certificate of deposit
FDIC (and NCUA) Insurance protects bank (and Credit Union) depositors by insuring up to _________ in the event of _________
$250,000 per depositor in the event of a financial institution failure
What are common bank fees?
ATM, overdraft(NSF) fees, retuned check fees, minimum balance fees, and monthly/annual fees
What are common bank conveniences?
Safe deposit boxes, overdraft protection, stop payments, electronic funds transafers, ATM’s, online banking, bank transfers, currency exchange, and notary services
What checks are drawn on the bank’s account?
Cashier’s check
What checks are drawn on your account?
Certified check
What checks can be purchased at the post office?
Money order
What checks have denominations of $20, $50, & $10?
Traveler’s check
