Chapter 5, Problem 2PA

Summary Introduction

To Identify:

Appropriate vehicle to place the money.

Introduction:

Savings account refers to the bank account where saving money is deposited and interest amount is paid by the bank on the deposit.

Money market mutual fund refers to the mutual funds which can be accessed with the help of money market. Money market mutual funds provide a easy and suitable place to place the cash reserves.

The Liquid assets imply that the assets which are readily available to be converted into cash. Examples Cash balance, Bank balance, Account receivables, Fixed deposits, Demand deposits.