Cash Or Liquid Asset


Nov 18, 2013 (4 years and 7 months ago)


Cash Or Liquid Asset

Financial Institutions

Type Financial Institutions

Commercial Banks

Savings and Loan Associations

Savings Banks

Credit Unions

Type Financial Institutions

Mutual Funds



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

Many pride themselves on customer service


CFSB, Heritage, Murray Bank, Citizens Deposit,


Credit Union

profit cooperatives

Established by churches,
, trade
unions, and corporations

Only open to members of that organization

Offer a wide range of competitive financial

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

type Financial Institutions

Mutual Fund

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

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

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)

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

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

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)