MONEY MANAGEMENT BASICS
This refers to how you manage cash, checking accounts, savings accounts, certificates of deposit, and money market accounts.
Monetary asset management
A checking account is also commonly called this type of account in the Philippines.
Current account
This type of bank account allows you to store money securely while earning interest.
Savings account
A money market account generally offers higher interest than a regular savings account and may provide limited privileges for this activity.
Check writing
Electronic money management allows you to handle money without relying primarily on paper documents, cash, or checks.
Electronic Money Management (EMM)
This term describes the speed and ease with which an asset can be converted into cash.
Liquidity
Unlike a typical savings account, a checking account allows the account holder to do this using checks.
Issue checks
According to the lesson, savings accounts are generally insured by this organization for eligible deposits up to ₱500,000 per depositor of a closed bank.
Philippine Deposit Insurance Corporation (PDIC)
The money market deals primarily with borrowing and lending money for periods ranging from overnight up to this maximum period.
One year
EFT stands for this.
Electronic Funds Transfer
The goal of monetary asset management is to maximize interest earnings and minimize these while keeping funds safe and accessible.
Fees
Which is a common use of a checking account: buying stocks for capital gains, paying utility bills, or storing money for retirement?
Paying utility bills
Instead of using the formula Salary − Expenses = Savings, the "pay yourself first" approach uses this formula.
Salary − Savings = Expenses
Name one short-term instrument commonly used in the money market.
Either: Treasury bills (T-bills) , commercial paper , certificates of deposit
When doing online banking, the lesson recommends using a protected home network rather than this type of network.
Public Wi-Fi
Name the three core tools of monetary asset management discussed in the lesson.
Checking account, savings account, and money market account
A business needs an account for its regular financial transactions and expenses. Which type of checking account is designed for this purpose?
Business checking account
This fund is intended for major, unexpected, uncommon, and urgent expenses such as job loss, medical expenses, and repairs.
Emergency fund
Unlike a money market account, a money market fund is not this type of product and therefore does not receive PDIC deposit insurance.
A bank deposit
A person receives an unsolicited email asking for their bank account information. According to the lesson, this could be an example of what type of scam?
Phishing
A student wants an account for daily transactions, another account for future expenses, and a place to put excess funds that can earn a higher return. Which three tools match these purposes?
Checking account, savings account, and money market account
A customer wants a checking account that combines features of both a checking and savings account. What type of account should the customer look for?
All-in-One Checking
A person calculates monthly essential expenses at ₱25,000 and wants an emergency fund equal to six months of expenses. How much should the target fund be?
₱150,000
An investor wants to pool money with other investors and have a professional fund manager invest it in short-term instruments such as T-bills, commercial papers, and bank time deposits. What investment vehicle is being described?
Money Market Fund (MMF)
After completing an online banking transaction, what two actions should a customer take to help protect their account and verify the transaction?
Log off/close the browser and review the transaction on the statement