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 market account efficiently, and it is also obligatory to advise them on solving the differences 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 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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Chapter 5 Solutions
PERSONAL FINANCE (LL)
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