Concept explainers
a
Case summary: H and B had $10,660 monetary assets, in the form of cash, savings accounts, and some small investments, they wanted to open a checking account and, determining their requirement it was recommended accordingly
Characters in the case: HJ and BJ.
Adequate Information: HJ and BJ has $10,660 in monetary assets. It is required to recommend them best checking and savings account that will enable them to effectively use the first and second tools of monetary asset management, use of
Savings and checking accounts have facility to withdraw money multiple times from the account and also earns interest, the funds used for day to day expenses can be deposited in these accounts which earns daily interest, and money market account, there are certain money market instruments such as Money market mutual funds which also has checking facility these type of instruments can be selected by HJ and BJ so that they can earn most of it.
To determine: Recommendations to J about the use of first and second tools of monetary asset management by selecting checking and savings accounts effectively.
Introduction:
Monetary asset management is the technique used to see that best possible interest is earned with lowest possible fees on funds that are available for day-to-day expenses, emergencies, savings, and investment opportunities. A best monetary asset management helps you to earn interest on your money while maintaining adequate liquidity and safety.
b
Case summary: H and B had $10,660 monetary assets, in the form of cash, savings accounts, and some small investments, they wanted to open a checking account and determining their requirement it was recommended accordingly
Characters in the case: HJ and BJ
Adequate Information: HJ and BJ have $10,660 in monetary assets. It is required to choose best checking and savings account that will help them to use the first and second tools of monetary asset management, money
Savings and checking accounts have facility to withdraw money multiple times from the account and also earns interest, the funds used for day to day expenses can be deposited in these accounts which earns daily interest, and money market account, there are certain money market instruments such as Money market mutual funds which also has checking facility these type of instruments can be selected by HJ and BJ so that they can earn most of it.
To determine: The recommendations for J regarding use of money market accounts.
Introduction:
Monetary asset management is the technique used to see that best possible interest is earned with lowest possible fees on funds that are available for day-to-day expenses, emergencies, savings, and investment opportunities. A best monetary asset management helps you to earn interest on your money while maintaining adequate liquidity and safety.
c
Case summary: H and B had $10,660 monetary assets, in the form of cash, savings accounts, and some small investments, they wanted to open a checking account and determining their requirement it was recommended accordingly
Characters in the case:HJ and BJ
Adequate Information: HJ and BJ has $10,660 in monetary assets. It is required to recommend them best checking and savings account that will enable them to effectively use the first and second tools of monetary asset management, use of money market account, and it is also required to advise them on resolving the disagreements in future.
Savings and checking accounts have facility to withdraw money multiple times from the account and also earns interest, the funds used for day to day expenses can be deposited in these accounts which earns daily interest, and money market account, there are certain money market instruments such as Money market mutual funds which also has checking facility these type of instruments can be selected by HJ and BJ so that they can earn most of it.
To determine: The savings instrument recommended for savings when the objective is to purchase new home.
Introduction:
Monetary asset management is the technique used to see that best possible interest is earned with lowest possible fees on funds that are available for day-to-day expenses, emergencies, savings, and investment opportunities. A best monetary asset management helps you to earn interest on your money while maintaining adequate liquidity and safety.
d
Case summary: H and B had $10,660 monetary assets, in the form of cash, savings accounts, and some small investments, they wanted to open a checking account and determining their requirement it was recommended accordingly
Characters in the case: HJ and BJ
Adequate Information: HJ and BJ has $10,660 in monetary assets. It is required to recommend them best checking and savings account that will enable them to effectively use the first and second tools of monetary asset management, use of money market account, and it is also required to advise them on resolving the disagreements in future.
Savings and checking accounts have facility to withdraw money multiple times from the account and also earns interest, the funds used for day to day expenses can be deposited in these accounts which earns daily interest, and money market account, there are certain money market instruments such as Money market mutual funds which also has checking facility these type of instruments can be selected by HJ and BJ so that they can earn most of it.
To determine: The amount they would have in the account after one year it J could put most of their money $10,660 in money market account.
Introduction:
Monetary asset management is the technique used to see that best possible interest is earned with lowest possible fees on funds that are available for day-to-day expenses, emergencies, savings, and investment opportunities. A best monetary asset management helps you to earn interest on your money while maintaining adequate liquidity and safety.
e
Case summary: H and B had $10,660 monetary assets, in the form of cash, savings accounts, and some small investments, they wanted to open a checking account and determining their requirement it was recommended accordingly
Characters in the case: HJ and BJ
Adequate Information: HJ and BJ has $10,660 in monetary assets. It is required to recommend them best checking and savings account that will enable them to effectively use the first and second tools of monetary asset management, use of money market account, and it is also required to advise them on resolving the disagreements in future.
Savings and checking accounts have facility to withdraw money multiple times from the account and also earns interest, the funds used for day to day expenses can be deposited in these accounts which earns daily interest, and money market account, there are certain money market instruments such as Money market mutual funds which also has checking facility these type of instruments can be selected by HJ and BJ so that they can earn most of it.
To determine: The way H and B can resolve and prevent disagreements in future.
Introduction:
Monetary asset management is the technique used to see that best possible interest is earned with lowest possible fees on funds that are available for day-to-day expenses, emergencies, savings, and investment opportunities. A best monetary asset management helps you to earn interest on your money while maintaining adequate liquidity and safety.
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MindTap for Garman/Forgue's Personal Finance Tax Update, 13th Edition [Instant Access], 2 terms
- 2. On April 1 Kendrick opened a savings account at a bank that paid 3.55 $1,000. On April 20 he withdrew $500. On April 30 the bank calculated the daily percent interest. His initial deposit was $3,200. On April 9 he deposited another interest. a) How much simple interest did his money earn? b) How much was in the account after the bank calculated the daily interest on April 30?arrow_forwardIt is typical for Jane to plan, monitor, and assess her financial position using cash flows over a given period, typically a month. Jane has a savings account, and her bank loans money at 6% per year while it offers short-term investment rates of 5%. Jane’s cash flows during August were as follows: Items Item Cash inflow Cash outflow Clothes $1,000 Interest received $ 450 Dining out 500 Groceries 800 Salary 4,500 Auto payment 355 Utilities 280 Mortgage 1,200 Gas 222 You are required to: Determine Jane’s total cash inflows and cash outflows. b. Determine the net cash flow for the month of August. c. If there is a shortage, what are a few options open to Jane? d. If there is a surplus, what would be a prudent strategy for her to follow?arrow_forwardHelp me pleasearrow_forward
- Using the following information about the family’s assets and liabilities, calculate the total assets: Checking account: $3,000 Savings account: $13,000 Credit card balance: $5,500 Utility bill: $500 Home: $320,000 Mortgage (30 years): $210,000 Car: $25,000 Car loan (60 months): $18,000 Student loan (7 years): $25,000 Household items: $15,000 Retirement account: $64,000 Other assets: $39,000 A) 464,000 B) 400,000 C) 415,000 D) 479,000arrow_forwardKwaku Addo earns $4200 per month take-home pay and has the funds directly deposited in his checking account. He spends only about $3500 per month, and the excess funds have been building up in his account for about one year. (a) What other types of accounts are available to Kwaku? (b) How might he manage his accounts to earn as much interest as possible and keep his money safe? (c) How might he use electronic money management to accomplish these tasks?arrow_forwardMatt has two single accounts at Midtown Bank. One account has a balance of $74,112.09 and the other has a balance of $77,239.01. Question: Is all of Matt's money insured by the FDIC? Explain.arrow_forward
- 23. Andy Eichel deposits the money he made at his garage sale into his savings account. He has 47 twenty-dollar bils, 51 ten-dollar bills, 25 five-dollar bills, and 36 one-dollar bills. What is his total deposit?* O $1,310 O $1,611 O $1,711 O $1,811 24. Francois DuFresne deposits $350.00 in a savings account. The account pays an annual interest rate of 4%. He makes no other deposits or withdrawals. After d How murh simple interest did bis mooL.cAarrow_forwardSamantha Knight is applying for a small-business loan. She provides the bank with the following information: cash in checking accounts, $5,000; cash in savings, $10,350; home market value, $145,500; first mortgage on house, $25,000; home equity loan limit, $70,000; home equity loan, $10,000; automobile market value, $19,000; automobile loan outstanding, $15,000; credit card debt, $1,500. Calculate the debt-to-asset ratio. Calculate the debt-to-equity ratio. What percentage of Samantha's assets are owned by others?arrow_forwardJune Peters deposits $6400 in a savings account at her bank. When she withdraws the money 8 months later, she receives a check for $6453.33. Assume simple interest and find the rate of interest paid by the bank.arrow_forward
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