Go to Yahoo, Finance, Banking - High Point University



Liquidity/Short Term Funds Exercise

Go to Yahoo, Finance, Banking

1. What advice would you give someone interested in opening a checking account or NOW account? Go to Everbank’s website (). Would you consider opening a checking account with EverBank? Explain.

2. What are the national averages for the following:

Savings account

3 Month CD

1 Year CD

5 Year CD

3. Why is there a difference in the above rates?

4. What is the difference between a CD and savings account?

5. Why is there a difference between the rate (Annual Percentage Rate APR) and yield (Annual Percentage Yield – APY)?

6. Go to Vanguard’s website—. Find Vanguard Prime Money Market. Assume you are a financial planner. Explain this fund to your client who is considering investing in the fund. Your description should be specific enough so your client can make an informed decision.

7. What is the difference between a money market account at a bank and a money market fund at a mutual fund company?

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