(a) What specific recommendations would you give the Johnsons for selecting checking and savings accounts that will enable them to effectively use the first and second tools of monetary asset management?
(b) Their annual budget, cash-flow calendar, and revolving savings fund, indicate that the Johnsons will have additional amounts to deposit in the coming year. What are your recommendations for the Johnsons regarding use of a money market account? Why?
(c) What savings instrument would you recommend for their savings, given their objective of saving enough to purchase a new home? Support your answer.
(d) If the Johnsons could put most of their cash on hand ($1000) into a money market account earning 1.4 percent, how much would they have in the account after one year?
(e) Recall from Chapter that Harry and Belinda had significant disagreements regarding their anniversary dinner and holiday gift spending and ended up not having a draft balanced budget for the year. Provide some advice for the couple about how to resolve or, better, prevent such disagreements in the future.

In January, Harry and Belinda Johnson had $3540 in monetary assets (see page 99): $1178 in cash on hand; $890 in a statement savings account at First Federal Bank earning 1.0 percent interest compounded daily; $560 in a statement savings account at the Far West Savings and Loan earning 1.1 percent interest compounded semiannually; $160 in a share account at the Smith Brokerage Credit Union earning a dividend of 1.3 percent compounded quarterly; and $752 in their non-interest-earning regular checking account at First Interstate.