MB M5

Sustaining members of public radio stations, such as WRKF in Baton Rouge and WWNO in New Orleans, make fixed monthly monetary donations to support the programming on those stations. These charitable donations are an example of which of the following functions of money? Select one: A. Unit of account. B. Standard of value. C. Medium of exchange. D. Means of unilateral payment. E. Standard of deferred payment.

Johanna is an institutional investor who is looking to “park” some of her investment funds for a short time. How would you explain to Johanna why money market instruments might be useful for her?

Logan has $2,000 in a checking account and wants to buy a new MacBook for $1,100. Logan decides he needs the money in his account to pay his bills next month, so he buys the MacBook by charging the $1,100 to his credit card and paying it off gradually over the next several months. Logan choosing to "save" his cash on hand for bills is:

Your rich uncle left you $10,000 in his will, but with a requirement that you invest the money into retirement savings.  Your brother suggests a Roth IRA, but your sister suggests a Traditional IRA.  Explain which one you should choose and why. Be sure to give a definition of IRA in your response.

Aa 144.

What factors influence your decision of where to put your money? a. How do you want to receive advice from the financial institution that holds your money? What advice topics would you prefer to receive in a format that lets you read/review on your own? (ex. email, newsletter, guides, etc.) What advice topics are specific to you where you'd rather interact with a real person?

Megan writes a check to Harold for $100 and gives the check to Harold for his birthday, Harold alters the check to read $ 1,000 and indorses the check to Samson in exchange for flying lessons. Samson is unaware of the alteration. Samson attempts to deposit the check in his account at Southern Savings and Loan, but Southern rejects the check because of the alteration. Samson can recover: $1,000 from Megan, because Samson is a holder in due course nothing from Megan, because the check has been altered. $1,000 from Megan, because Harold is a holder in due course. $100 from Megan, because Samson is a holder in due course

Alhaji Abubakar is a wealthy customer of your branch who is currently away on a “Hajj Trip” to Saudi Arabia. The branch receives a telephone call from a stranger who says he is Mr. Kwame Bobo, who says that he is a photographer and that Alhaji Abubakar, prior to going abroad, had given him a crossed cheque for GHȼ20,000 in payment for pictures. The cheque has been lost and Mr. Bobo asks if your branch will stop payment of the cheque if it is presented. He leaves his telephone number in case of need. The cheque is discovered in the days clearing. It is properly drawn in favor of Mr. Kwame Bobo and is endorsed “Kwame Bobo” on the back.   i) What is the bank position vis-à-vis Alhaji Abubakar and Mr. Kwame Bobo? ii) Explain clearly how would you deal with the cheque?

As a lender/depositor, how would you compare time to demand deposits?     Demand deposits are more liquid, but time deposits pay a higher interest rate     Demand deposits are more liquid, but time deposits pay a lower interest rate     Demand deposits are less liquid, but time deposits pay a higher interest rate     Demand deposits are less liquid, but time deposits pay a lower interest rate

Which of the following is true concerning IRA’s, 401(k) and 403(b) plans?   a. There are no limits on the amount of funds people can hold in them.     b. Some people are not eligible to hold them.     c. There are never penalties for withdrawals.     d. All of the above are correct.

Suppose on your 21st birthday, your eccentric grandmother invites you to her house, takes you into her library, removes a black velvet painting of Elvis Presley from the wall, opens a hidden safe where she removes 50 crisp $100 bills, and hands them to you as a present, claiming you are her favorite grandchild. After thanking your grandmother profusely (and helping her rehang the picture of Elvis), you proceed to your bank and deposit half of your gift in your checking account and half in your savings account. How will these transactions affect M1 and M2? How will these transactions change M1 and M2 in the short run? What about the long run?”

Gilberto wants to purchase a new computer and go to the Caribbean for spring break. The computer is priced at $1,299, and the vacation is priced at $800. He has only $1,574 in his checking account, so he cannot afford to purchase both. After much thought, Gilberto buys the computer and writes a check for $1,299. Identify what role money plays in each of the following parts of the story.

The cost of money is established and measured by an interest rate. True or false?

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Answer this question in no more than 5 sentences. Why is it necessary for money to possess the necessary attributes that qualify it as “good money”?

Shen wants to both purchase a new laptop and go Florida for spring break. The computer is priced at $1,299, and the vacation is priced at $750. He has only $1,537 in his checking account, so he cannot afford to purchase both. After much thought, Shen buys the laptop and writes a check for $1,299. Identify what role money plays in each of the following parts of the story. Hint: Select each role only once. Role of Money Shen can easily determine that the price of the laptop is more than the price of the vacation. Shen has $1,537 in his checking account. Shen writes a check for $1,299. Medium of Exchange Unit of Account Store of Value O O

Cash in the hands of the public = P300B Demand deposits = P400B Other Checkable Deposits = P150B Traveler's checks = P50B Savings Type accounts = P2000B Money Market Mutual Funds = P1000B Small-Time Deposits = P500B Large Time Deposits = P450B

You are getting married and are unhappy with your present bank. Discuss how you should go about choosing a new bank and opening an account.  Consider the factors that are important to you in selecting a bank – such as the type and ownership of accounts (individual or joint) and bank fees and charges, among others.

What is the basic obligation of a depository bank to its depositor? Enumerate and explain the different kinds of deposit. X is a depositor of AAA Bank. She has three deposit accounts all under her name. One, in checking account, one in saving account and another in time deposit account. Each account has a balance of P250,000. AAA Bank became insolvent. Philippine Deposit Insurance Corporation closed the Bank. X therefore is unable to withdraw from all of the accounts. She then filed her claims with the Philippine Deposit Insurance Corporation. How much can X claim for all the three accounts? Explain. ABC Bank was forced to close because its building was destroyed by fire. Mr. A, one of its depositors filed an insurance claim with the Philippine Deposit Insurance Corporation. Will the claim prosper? Answer with reasons. A, Mr. B and Mr. C have the following accounts in the closed XY Bank: Account No. 1 in the name of Mr. A, P150,000, Account No. 2 in the name of “Mr. A in trust for Mr.…

Distinguish between the present worth of cash and future worth of cash?

A bank can make profit by: a)borrowing money from the government at 0% interest. b)giving you a particular interest return on your savings and then loaning out the same money at a lower rate of interest. c)giving you a particular interest return on your savings and then loaning out the same money at a higher rate of interest. d)storing and locking away all the deposits made by consumers.

Am. 290.

Definition of the initial cash reserve

Give at least three examples of a situation in which financialmarkets allow consumers to better time their purchases.

Question 8 True or False. A living will is a document that is ambulatory until the death of the decedent and then it describes how the decedent's property should be distributed.     True     False   Question 9 Donald puts a lot of money into a bucket and gives Bernie a power of appointment over the money in the bucket. Bernie has the power to distribute that money only to himself, his creditors, his estate, or his estate's creditors. What is the correct name for his power of appointment? It is a/an:     General power of appointment     Limited power of appointment   Question 10 True or False. The spousal consent rules for the annual exclusion require the non-donor spouse to consent to all gifts made by the donor spouse in that year; he or she cannot select which gifts he or she will join and which he or she will not.     True     False

Buying a cup of coffee with a dollar bill represents the use of money as a

Research and identify two cryptocurrencies, how they have evolved in recent years and how might you expect them to evolve further in the future. Discuss whether these means of “payment” fully fulfil all three functions of “money.”  (Your answer should be 600 words ±10%)

If you write a cheque on a bank in Saskatoon to purchase a new Nissan Murano, you are employing money as: Multiple Choice . a)all of these answers are true. b)a medium of exchange. c)a store of value. d)a unit of account.