Which of the following is the better banking option for Jane who keeps a minimum bank balance of $1000, needs liquidity and does ten transactions per month?

a.

Bee Bank charges a $60 annual fee for the account, pays interest at two percent on the average monthly balance, and has $1.00 ABM fees.

b.

Ace Bank pays no interest, has no ABM fees but charges a $7.00 monthly account fee.

c.

Sea Bank charges no fees as long as the account balance remains above $1000, pays two percent interest on the average monthly balance, charges $1.00 ABM fees, and requires no minimum balance.

d.

Dee Bank requires no minimum balance, pays one percent interest on the average monthly balance, and allows 10 free ABM withdrawals a month, but charges $3 per withdrawal thereafter.

Advantages of investing in mutual funds include all of the following except

a.

professional management.

b.

meeting specific investment goals.

c.

eliminating systematic risk.

d.

diversification of your investment

Even though insurance costs reduce your cash flow, insurance could have a larger impact on your net worth than its cost.

Select one:

True

False