FINC 120 Lecture Notes - Lecture 5: Brokerage Firm, Deposit Account, Mutual Fund
Document Summary
Routine administration of cash and near-cash resources. Establishes savings program that is an important part of personal financial planning. Have implications for personal finances by creating economic distortions. Discourage savings and the reduction of debt levels. Encourage investors to search for investments that pay income. Commercial banks, savings and loan associations (s&ls), savings banks, and. Other types of financial institutions that offer banking services. Account from which funds can be withdrawn on demand by the account holder. Savings deposit that remains deposit for a longer time than a demand deposit. Checking account on which the financial institution pays interest. Offered by banks and other depository institutions. Pools the funds of small investors and purchases high-return, short-term marketable securities. Comprehensive deposit account offered by brokerage houses and mutual funds. Uses latest telecommunications and computer technology to electronically transfer funds into and out of customers" accounts. Debit cards and automated teller machines (atms)
