Question: Veronica plans to open a checking account
Veronica plans to open a checking account with her $1,200 tax refund check. She believes she can maintain a $500 minimum balance. Also, she estimates that she will write 10 checks per month and will use other banks’ ATMs as many as 15 times per month. Which bank should Veronica choose?
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South Sun Hillsboro First Trust Coast Bank National Bank Bank ATM Charges: Home bank Other bank Free Free Free Free $1.25 $1.25 4 free, then $1 $1.25 per use Checking: Minimum deposit $100 $25 $1 $1 Minimum balance required to avoid fees* N/A N/A $500 N/A Monthly fees $6 $7 $11 $2.50 Check-writing charges 12 free, 7 free, Unlimited Each then $1 then $1 check 50 cents per check per check *N/A means monthly fees apply irrespective of account balances.
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> List the advantages of paying your bills online.
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> Briefly discuss conditions that can cause a shift in the demand for funds and a change in the interest rate.
> What is monetary policy? What organization controls monetary policy in the United States?
> What is the term structure of interest rates? Why is this concept important to an investor?
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> Where do financial institutions obtain funds for making loans? How are the interest rates for loans determined? Are the interest rates the same for all borrowers? Why or why not?
> List and describe the four main types of nondepository financial institutions.
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> What constitutes identity theft?
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