Question

1. Identify the goals of monetary asset management and sources of such financial services.
2. Understand and employ the various types of accounts available to meet the goals of monetary asset management.
3. Establish ownership of assets wisely.
4. Describe your legal protections when conducting monetary asset management electronically.
5. Discuss your money and personal finances effectively with loved ones.

Answer 1

Monetary asset management is the act of checking your accounts like cash in hand, money market accounts, savings account and other short term and long term investments. This management deal with keeping the interest earning high and eliminating all the high cost investments methods. The ultimate goal of this management is to minimize cost and maximise the interest on all the monetary instruments which are kept readily available for future use. This type of financial service is provided by Commercial banks, Mutual Fund houses, Financial Service companies and stock brokerage firms.

There are mainly four types of accounts available for meeting the goals of Monetary asset management namely,

1. Interest - Checking Account: This account is maintained for paying living expenses. Costs like fees, charges, etc. should be looked upon before getting this account.

2. Local Savings Account: This account is maintained to save money for upcoming expenses or for little investment.

3. Money Market Account: When income exceeds expenditure, it is advisable to invest your money at a place where you get higher returns. You can park your money here and decide on the avenues of investments available.

4. Long - term Saving Instrument: Here, you can invest your money for long term and get even higher returns but safely. There are only two avenues available here, Certificate of Deposit and U.S Government Savings Bonds.

While conducting Monetary asset management electronically, Bank security measures can be used like using Debit or Credit Card for payment, using various trusted payment methods available, not disclosing your password, etc. While doing electronic transactions, there are various banking guidelines available. Those can also be used here for safe transfer.

Talking and asking your family members and loved ones can be of great help while investing. You can get a whole new idea talking with them. You can also get to know their opinions and views on investment decision. This can save you from investing in the worng avenue.