MCS 2100 Lecture Notes - Lecture 3: Cash Machine, Financial Institution, Deposit Insurance
10 Jun 2017
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Chapter 4 the banking services of financial institutions. Managing cash: common mistakes made when managing current cash needs include: Overspending as a result of impulse buying and using credit cards. Having insufficient liquid assets to pay current bills. Using savings or borrowing to pay for current expenses. Failing to put unneeded funds into and interest earning savings account. Sources of quick cash: no matter how much money you have, there may be times that you need more money than you have available, you have two choices: Borrow: the best and most efficient source of quick cash is a personal line of credit, arranged before the need arises, however, savings and increasing borrowing reduce net worth and potential to achieve long term financial security. Computerized financial services provide a fast, convenient and efficient system for recording inflows and outflows. Direct deposit: earnings are automatically deposited into chequing accounts or savings accounts.
