Question
1-Scenario: You are 26 years old, married, and have two small children. You have a household income (take-home pay) of $3,500 per month and currently
1-Scenario: You are 26 years old, married, and have two small children. You have a household income (take-home pay) of $3,500 per month and currently rent your home. You have and pay many bills, and make many purchases (usually by debit card) each month. You often lose track of spending and end up paying unnecessary bank fees. You would like to buy a new car in five months and a new home in two years. To avoid overdrafts, you chose "opt-in" overdraft protection with your bank. You just received your bank statement, which states a balance of $691, while your check register says you have a balance of $800.
Which of the following accounts would be best for ...?
Purpose Type of account
A- Satisfying your day-to-day spending needs? _________________________
B- Making and holding funds for your car purchase? _________________________
C- Making and holding funds for your home purchase? ____________________________
D- Making and holding funds for your retirement? __________________________
Options:
A- Stock and bond portfolio B- NOW account C- NOW account D- Mutual funds
Certificate of deposit Money market mutual fund Statement savings account NOW account
Statement savings account Mutual funds Certificate of deposit Share draft account
NOW account Statement savings account Money order totten trust
2- Which of the following accounts is typically not insured?
- Mutual Funds
- NOW account
- Certificate of deposit
- Statement savings account
3- Which of the following practices would help you keep accurate records regarding the funds in your bank account? Check all that apply.
O Keep track of your balance online.
O Immediately record the date and amount of each transaction in your check register and calculate the new balance.
O Wait for the printed bank statement to arrive in the mail to know what payments and receipts have cleared your account.
4- You can avoid a service fee on an average-balance account if you:
- Issue a stop-payment order when you find yourself overdrawn.
- Keep a certain average daily balance in the account through a specified time.
- Avoid an overdraft for a specified time.
- Have your paycheck automatically deposited into your account each pay period.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started