How Would David Kellogg Maintains A Monthly Balance In The Following Checking Account?
PART I
Directions: Using Microsoft® Word to save and submit your work, please provide detailed and elaborate responses to the following questions. Your responses should include examples from the reading assignments.
1. What are the main components of a personal balance sheet and a cash flow statement? What is the main purpose of each of these personal financial statements?
A personal balance sheet and a cash flow statement are personal financial statements that show your current financial position and summarize one’s income and spending. The purpose of these financial statements is to report your current position in relation to your net worth, measure your progress toward you financial goals, serve as a log of financial activities, and provide …show more content…
Brad Kellogg maintains a monthly balance in his checking account of approximately $150, writes about 25 checks a month, and makes three deposits each month. How would Brad decide which one of the following checking accounts he should use? Bank A: regular checking account with a monthly fee of $4.50 for an unlimited number of checks, no monthly balance requirement, and no interest earnings; Bank B: interest-bearing checking account paying 4 percent interest on balances over $300 and a monthly service charge of $6 if the balance falls below $300; Bank C: special checking account that charges 35 cents a check and 20 cents for each deposit, no interest earnings; or Bank D: minimum-balance account that requires a $200 minimum balance to avoid the $10 monthly fee, two percent interest paid if the balance remains above …show more content…
The consequences of giving up something can either be positive or negative. If one decides to give up smoking, the opportunity costs are generally positive because he or she saves money, improves health, and saves on the cost of life insurance. Alternatively, if an individual makes a poor decision the opportunity costs could have a negative financial effect.
9. What are the main types of financial institutions used by consumers?
The main financial institutions used by consumers are commercial banks, savings and loan associations, mutual savings banks, and credit unions. Commercial banks offer many products such as checking, savings, lending, and many other services. These are usually your run of the mill big name institutions.
Savings and loan associations offer the same services as a bank, however they are more specialized. Concentrating in business loans, Savings plans, investments, and financial planning, S&L Associations have adapted to the financial market by expanding their products to include checking, credit cards, and
Directions: Using Microsoft® Word to save and submit your work, please provide detailed and elaborate responses to the following questions. Your responses should include examples from the reading assignments.
1. What are the main components of a personal balance sheet and a cash flow statement? What is the main purpose of each of these personal financial statements?
A personal balance sheet and a cash flow statement are personal financial statements that show your current financial position and summarize one’s income and spending. The purpose of these financial statements is to report your current position in relation to your net worth, measure your progress toward you financial goals, serve as a log of financial activities, and provide …show more content…
Brad Kellogg maintains a monthly balance in his checking account of approximately $150, writes about 25 checks a month, and makes three deposits each month. How would Brad decide which one of the following checking accounts he should use? Bank A: regular checking account with a monthly fee of $4.50 for an unlimited number of checks, no monthly balance requirement, and no interest earnings; Bank B: interest-bearing checking account paying 4 percent interest on balances over $300 and a monthly service charge of $6 if the balance falls below $300; Bank C: special checking account that charges 35 cents a check and 20 cents for each deposit, no interest earnings; or Bank D: minimum-balance account that requires a $200 minimum balance to avoid the $10 monthly fee, two percent interest paid if the balance remains above …show more content…
The consequences of giving up something can either be positive or negative. If one decides to give up smoking, the opportunity costs are generally positive because he or she saves money, improves health, and saves on the cost of life insurance. Alternatively, if an individual makes a poor decision the opportunity costs could have a negative financial effect.
9. What are the main types of financial institutions used by consumers?
The main financial institutions used by consumers are commercial banks, savings and loan associations, mutual savings banks, and credit unions. Commercial banks offer many products such as checking, savings, lending, and many other services. These are usually your run of the mill big name institutions.
Savings and loan associations offer the same services as a bank, however they are more specialized. Concentrating in business loans, Savings plans, investments, and financial planning, S&L Associations have adapted to the financial market by expanding their products to include checking, credit cards, and