Questions from Personal Finance

Q: Compare the return and liquidity of the various money market investments.

Compare the return and liquidity of the various money market investments. Give specific examples.

Q: What are the three types of risk that affect money market investments

What are the three types of risk that affect money market investments?

Q: Generally compare the money market investments described in this chapter in terms

Generally compare the money market investments described in this chapter in terms of their vulnerability to credit risk, interest rate risk, and liquidity risk. Provide some examples of specific secur...

Q: What steps should you take to determine the best allocation of your

What steps should you take to determine the best allocation of your money market investments? What factors should you consider in determining your allocation?

Q: Why is it important to have sufficient liquidity during a weak economy

Why is it important to have sufficient liquidity during a weak economy?

Q: Name some ways an individual might handle a cash flow deficiency.

Name some ways an individual might handle a cash flow deficiency. Which way would be preferable? Why?

Q: What two factors affect the return on short-term investments?

What two factors affect the return on short-term investments? What investments should you consider to achieve liquidity and an adequate return?

Q: Why do individuals use checking accounts? What is the disadvantage of

Why do individuals use checking accounts? What is the disadvantage of having funds in a checking account? Explain overdraft protection and stop payment orders. Are all bank fee structures the same?

Q: How does a debit card transaction differ from writing a check?

How does a debit card transaction differ from writing a check?

Q: How will overdraft protection affect bounced checks? Should you take advantage

How will overdraft protection affect bounced checks? Should you take advantage of this feature if your bank offers overdraft protection?