Econ test 2 chpt 6

a series of decisions made over a short-term period regarding cash inflows and out flows

your ability to cover any cash deficiencies that you may experience

an arrangement that protects a customer who writes a check for an account that exceeds the checking account balance. it is a short term loan from the depository institution where the checking account is maintained

a financial intitutions notice that it will will not honor a check if someone tries to cash it; usually occurs in response to a requast by the writer of the check

a type of deposit offered by a depository institutions that provides checking services and pays interest

certificates of deposite that have small denominations (such as 5000 or 10000)

a deposit offered by a depository institution that requires a minimum balance, no maturity date, pays interest and allows a limited number of checks to be written each month

debt securities issued by the U.S. Treasury

Treasury securities with maturrities of one year or less

a market where existing securities such as Treasury Bills can be purchased or sold

the risk that a borrower may not repay on a timely basis

the risk that the value of an investment could decline as a result of a change in interest rates

the potential loss that could occur as a result of converting an investment into cash