CH 5 ASSIGNMENT CH 5 ASSIGNMENT - SAVINGS

1) Most of Americans savings are stored in banks. Why might a credit union be a better place for your savings?

2) What distinguishes Certificates of Deposits (CDs) from the other types of savings accounts offered by banks (day to day savings and money market deposit accounts)? List at least one advantage and one disadvantage between the CD and the other savings accounts.

3) Taking into consideration the relatively low rates of return on these accounts and the fact that banks are private companies that can make bad loans and go broke, why do individuals feel so confident that their money is safe in a bank?

4) Using the Maximizing FDIC Insurance article in the Course Documents section of Blackboard can you show how a married couple can insure 1 million dollars in the same bank? 5) What differentiates Money Market Mutual Funds from Money Market Deposit Accounts?

Ch 5 CHECKING Please follow the format in Figure 5.1 (on page 154 of the text) in answering the following questions reated to Discussion Case 2 on pp 164-167:

1. Which items on the monthly bank statement (p 165) are NOT included in the check register (p 166=167) . What is the adjusted check register balance after these adjustments?

2. Which deposits (if any) on the check register are NOT included on the bank statement? Which checks (if any) on the check register are NOT included on the bank statement? What is the adjusted bank statement balance after these adjustments?

3. Are there any arithmetical errors in the check register?