That's Fast
This is the speed and ease in which and asset can be converted to cash.
Liquidity
Using an ATM not owned by your bank, stop payment orders, account falls below a minimum amount.
What can a licensed stock broker offer you that you cannot get a depository institution?
Stocks, bonds, mutual funds
List two common services that you could get at a depository institution.
Checking, savings, lending, CDs
What is the term used to describe funds that are free from financial risk.
Along with high liquidity, this is the second advantage of monetary assets.
Low Risk
What is the fee called that is received when a person writes a check for more money than they have in their account?
Overdraft Fee
How much of your living expenses should be readily accessible in savings?
Three times your monthly expenses
What's the name of the organization that insures commercial banks?
FDIC
What is one advantage to using a credit union over a commercial bank?
Higher interest rates on savings accounts and lower interest rates on loans
What are two ways you can transfer money from your checking account to another person or organization?
Write a check, use a debit card, make an electronic funds transfer
What is it called when you contact your bank to alert them to stop the payment on a check you have written - this only works if the check has not been cashed.
Stop-Payment Order
What are monetary assets used for?
These institutions offer the widest variety of financial services.
Commercial Banks
What's the amount of protection offered to individual and joint accounts held at an FDIC backed institution?
$250,000
This is an interest-earning savings instrument purchased for a fixed period of time.
Certificate of Deposit (CD)
What type of payment instrument can you get at your local post office?
Money Order
This is the main reason why most people say they cannot save.
They don't have any money left over at the end of the month
Who's account is a cashier's check drawn on?
The financial institution itself
What do we call accounts that earn different interest rates depending on the amount you have in them?
Tiered interest accounts
Which asset is the most liquid?
Cash
What is something that you should do monthly to compare your checkbook to your bank statement?
Reconcile your checkbook
List two facts about credit unions.
Operate on a non-profit basis, members must live in a common region and generally have the same employer, they pay higher interest rates on savings, their rates on loans are lower.
This is what we call a checking account that can be accessed by using a debit card.
Lifeline checking account
Monetary assets do not protect us from this.
Inflation