Your parents are retired and have expressed concern about the really low interest rates they’re earning on their savings. They’ve been approached by an advisor who says he has a “sure-fire” way to get them higher returns. What would you tell your parents about the low-interest-rate environment, and how would you advise them to view the advisor’s new prospective investments? 


Your parents are retired and have expressed concern about the really low interest rates they’re earning on their savings. They’ve been approached by an advisor who says he has a “sure-fire” way to get them higher returns. What would you tell your parents about the low-interest-rate environment, and how would you advise them to view the advisor’s new prospective investments? 


j. Suppose that someone stole your ATM card and withdrew $950 from your checking account. How much money could you lose (according to federal legislation) if you reported the stolen card to the bank: (a) the day the card was stolen, (b) 6 days after the theft,
(c) 65 days after receiving your periodic statement? 


k.You’re getting married and are unhappy with your present bank. Discuss how you should go about choosing a new bank and opening an account. Consider the factors that are important to you in selecting a bank—such as the type and ownership of new accounts and bank fees and charges. 


l. Determine the annual net cost of these checking accounts:
a. Monthly fee $4, check-processing fee of 20 cents, average of 23 checks written per month b. Annual interest of 2.5 percent paid if balance exceeds $750, $8 monthly fee if account 
falls below minimum balance, average monthly balance $815, account falls below $750 during four months 


m. If you put $6,000 in a savings account that pays interest at the rate of 4 percent, compounded annually, how much will you have in five years? (Hint: Use the future value formula.) How much interest will you earn during the five years? If you put $6,000 each year into a savings account that pays interest at the rate of 4 percent a year, how much would you have after five years? 


n.Describe some of the short-term investment vehicles that can be used to manage your cash resources. What factors would you focus on if you were concerned that the government deficits associated with the recent financial crisis will lead to a significant increase in future inflation?