Chapter 5: Managing Your Cash. Explain the importance of effective cash management and list the four tools of cash management. Compare and contrast the primary providers of cash management opportunities in today’s financial services industry.
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Explain the importance of effective cash management and list the four tools of cash management.
Compare and contrast the primary providers of cash management opportunities in today’s financial services industry.
Understand the uses of electronic funds transfer and the legal protections available for it.
Understand the criteria for choosing and using various types of checking accounts and the importance of having an interest-earning checking account.
Identify the potential benefits of opening a savings account as well as key factors to consider when comparing savings account.
Explain the importance of placing excess funds in a money market account.
List the potential benefits of putting money into low-risk, longer-term savings instruments.
Maximizing interest earnings
Minimizing fees on all funds kept readily available for living expenses, recurring household expenses, emergencies, and saving and investment opportunities
Account exception fees
Tenancy in common
Tenancy by the entirety
Current income that is not spent on consumption; provides source of emergency funds and/or temporary place for funds in excess of daily living expenses.
Statement savings account (passbook)
Interest savings account
Any of a variety of interest-earning accounts that pay relatively high interest rates and offer some limited check-writing privileges.