Cash Or Liquid Asset

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18 Νοε 2013 (πριν από 3 χρόνια και 8 μήνες)

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Cash Or Liquid Asset
Management

Financial Institutions


Deposit
-
Type Financial Institutions


Commercial Banks


Savings and Loan Associations


Savings Banks


Credit Unions


Nondeposit
-
Type Financial Institutions


Mutual Funds


Stockbrockerage

Firms



Commercial Banks


Offer widest variety of financial services


Checking and savings accounts, credit cards, safety
deposit boxes, financial consulting, and lending


Dominate in terms of dollar value of the assets
they hold


Have more branch offices or locations than
any other type of financial institution


Many offer online banking services

Commercial Banks


Citibank, NationsBank, Regions, Bank of
America, US Bank

Community Banks


Are similar to commercial banks but are
located in a particular area or region


Less locations and not as many services
offered


Many pride themselves on customer service


“Small
-
town”


CFSB, Heritage, Murray Bank, Citizens Deposit,
1
st

Kentucky

Credit Union


Not
-
for
-
profit cooperatives


Established by churches,
univerisities
, trade
unions, and corporations


Only open to members of that organization


Offer a wide range of competitive financial
services


More efficient, smaller scale


Pay higher interest rates and have lower fees
and minimum balances

Credit Union


Murray State Credit Union, Navy Federal
Credit Union, General Tire Credit Union

Nondeposit
-
type Financial Institutions


Mutual Fund
-

An investment fund that raises
funds from investors, pools the money, and
invests it in stocks, bonds, and other
investments.


Investors own shares proportionate to the
amount of their investment level.

Cash Management Alternatives


Checking Accounts


Saving Accounts


Money Market Deposit Accounts


Certificates of Deposit


Money Market Mutual Funds


U.S. Treasury Bills, or T
-
Bills


U.S. Series EE Bonds

Checking Account


Demand Deposit
-

A type of checking account
on which no interest is paid


NOW (Negotiable Order of Withdrawal)
Account
-

A checking account on which you
earn interest on your balance


Minimum balance


Monthly Fees

Savings Account


Time deposit


May be required to keep money deposited for a
minimum time period


A deposit account that pays interest


Make withdrawals at the bank with a
withdrawal slip or with an ATM card

Money Market Deposit Accounts


Alternative to savings account offered by
commercial banks


Rate of interest varies with the current market
rate of interest


Interest rate is higher that regular savings
account


Offers limited check writing service


Requires higher minimum balance than
regular savings ($1000 +)

Certificate of Deposit


Pays a fixed rate of interest while keeping your
funds on deposit for a set period of time


30 days to several years


The longer time period funds are deposited,
the higher rate of interest


Interest rate stays fixed for the life of the CD


Early withdrawal penalties

Money Market Mutual Funds


Mutual funds that invest in short
-
term notes
of very high denomination


Earn a higher rate of return


Limited check writing privileges

U.S. Treasury Bills (T Bills)


Short term notes of debt issued by the federal
government, with maturities ranging from 3
months to 12 months


Minimum denomination is $1000

U.S. Series EE Bonds


A type of security that’s actually a loan on
which you receive interest


When bond matures you get back your
investment


Low denominations and variable interest rates


When a bond is purchased, its price is ½ its
face value (buy a $50 bonds for $25, but it will
be worth $50 when it matures)