Bennie Waller [email protected] 434-395-2046 Longwood University 201 High Street Farmville, VA 23901. Managing cash (near cash) assets involves liquidity choices. Liquidity is the ability of assets to be easily converted to cash
Savings Accounts – are very liquid, safe and earn some interest. However, most require minimum holding periods to earn interest, have minimum balances and pay a very low rate.
“Banks” or depository financial institutions provide traditional checking and savings accounts and offer a wide variety of financial services.
Non-deposit-type financial institutions have more recently begun to offer similar services as banks, while banks have begun to offer services traditionally provided by non-deposit institutions (e.g., securities purchases).
Thus, over the past two decades, traditional lines between the two types of financial institutions have blurred considerably.
Allow you access the money in your accounts electronically and limits the need to carry cash.
Banks are run by humans and computers. Both are capable of error. Always keep a record!