Exam 5: Managing Your Financial Resources - Banking Services and Managing Your Money

Illustrate how you would quantify the effective annual interest rate for someone who was charged two $40 NSF fees on their account due to bouncing a cheque (writing a cheque when there are not enough funds in their bank account to cover it)for $1000 which would have been covered by their pay cheque in five days' time.Explain the effective interest rate charged if they had overdraft protection with a 21 percent interest charge and a $5.00 fee.Comment on better ways to manage liquidity than either of these options.

Which of the following is True regarding guaranteed investment certificates (GICs)?

Because they have lower overhead,web-based financial institutions tend to pay higher interest rates on deposits than institutions with physical branches.