SOCSCI 2PF3 Lecture 4: Chapter 4 - Managing Your Cash and Savings
Document Summary
How safe is your money: federally insured or have made an consumer insurance program. Chequing accounts (a type of demand deposit: with sufficient funds, banks must immediately pay the amount of your cheque or atm withdrawal. Types of chequing accounts: value chequing, self-serve chequing, full serve chequing, select service chequing. Money market mutual funds: offered by investment (mutual fund) companies, not federally insured; trade on open market. Electonic banking services: e. g. online banking, debit cards, atm service, etc. Other bank services: e. g. safe deposit boxes, trust services, mutual fund sales. Interest can be earned in 2 ways of interest: 1) some investments are sold on a discount basis with no stated rate. Socsci 2pf3: treasury bill is sold at discount, 2) other investments offer direct payment or a stated rate of interest, gic, premium going forward. Simple interest is invested in the next period.