Julia’s six-figure salary has allowed her to build up a considerable cash reserve of over $20,000. She initially had basic checking and savings accounts. She also has a credit card with her bank that she uses to make most of her purchases, thereby earning reward points. She is careful to pay the account balance in full each month. Over time, she purchased several CDs. About three years ago, she also opened a money market deposit account at her bank in which she keeps almost $10,000. Last week she got a call from the bank suggesting that she open a cash management account to coordinate her accounts and maximize her overall earnings. She is hesitant to do so as she feels her current arrangement meets her needs. Offer your opinions about her thinking.
Answer to relevant QuestionsJoshua Franz earned $4600 during the summer and put $3500 of the money in a newly opened savings account for use during the school year. It is now November 4th and Joshua went to the bank to withdraw $1000. The teller ...1. Which two good uses of credit seem most reasonable to you? Which do not?2. Explain the two downsides of credit that would be most worrisome for you.3. Distinguish between the APR and the finance charge on a debt.1. Kevin Jones is single and recently graduated from law school. He earns $9000 per month, an awesome salary for someone only 26 years old. He also has $1400 withheld for federal income tax, $540 for state income taxes, $688 ...1. Distinguish between installment credit and open-ended credit. 2. Explain the basic features of revolving credit.3. Describe how someone might use a personal line of credit.(a) What payment should Maria make on the account?(b) How should she notify her credit card issuer about the unauthorized use?(c) Once the matter is resolved, what should Maria do to ensure that her credit history is not ...
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