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1.14.2.A1 Worksheet

Cash Management Tools

Total Points Earned 32 Total Points Possible

Percentage

Name_________________ Date_________________ Class_________________

Directions: Complete the questions based on the cash management information. 1. The daily routine of handling money to take care of individual or family needs is called . (1 point)

2. Money should be available for what four items with effective cash management? (4 points)

3. Define a cash management tool. (1 point)

4. What is a checking account? (1 point)

5. Name three ways to access funds in a checking account. (3 points)

6. A savings account is meant to hold what kind of money? (1 point)

7. Describe two features of a savings account. (2 points)

8. What is a money market deposit account? (1 point) 9. Name and define the type of interest rate used for a money market deposit account. (2 points)

? Family Economics & Financial Education ? Revised April 2008 ? Saving Unit ? Managing Your Cash ? Page 7 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1.14.2.A1 Worksheet

10. A to the funds. (1 point)

is an insured, interest earning savings instrument with restricted access

11. What are three features of a certificate of deposit? (3 points)

12. Define a savings bond. (1 point)

13. For what amount can a savings bond be purchased? (1 point)

14. What is liquidity? (1 point)

15. Investors should invest in both

and

tools. (2 points)

16. Complete the chart below by listing the most liquid cash management tool to the least. (5 points)

Most liquid Least liquid

Cash Management Tool 1. 2. 3. 4. 5.

17. These five cash management tools are protected by whom against loss? (1 point)

18. Cash management tools are on what level of the investment risk pyramid? (1 point)

? Family Economics & Financial Education ? Revised April 2008 ? Saving Unit ? Managing Your Cash ? Page 8 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

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