Questions from Personal Finance


Q: What are Treasury securities? What is a T-bill?

What are Treasury securities? What is a T-bill? How is it denominated? How do you earn a return on a T-bill? How is the return calculated?

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Q: How does your individual tolerance for risk impact money management?

How does your individual tolerance for risk impact money management?

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Q: Explain why you should not invest in the stock market if you

Explain why you should not invest in the stock market if you expect to need the funds in the near future. Are stocks liquid?

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Q: Explain the risks of using a credit card for your liquidity needs

Explain the risks of using a credit card for your liquidity needs.

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Q: What are money market funds (MMFs)? What types of securities

What are money market funds (MMFs)? What types of securities do they invest in? What is commercial paper? Are MMFs risky investments? Are MMFs liquid?

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Q: What is an asset management account? Discuss the advantages of such

What is an asset management account? Discuss the advantages of such an account as well as its requirements.

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Q: What is an automatic transfer? How can this tool help you

What is an automatic transfer? How can this tool help you save money?

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Q: Compare the interest rates offered on T-bills and CDs.

Compare the interest rates offered on T-bills and CDs. Which type of investment is more liquid? Why?

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Q: What is a disadvantage of maintaining a very high level of liquidity

What is a disadvantage of maintaining a very high level of liquidity?

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Q: Assume that your monthly expenses will not change over the next three

Assume that your monthly expenses will not change over the next three years, but you expect that the economy will be much weaker in about a year. Explain why you may need more liquidity even if your e...

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