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Unformatted text preview: on credit cards Insufficient liquid assets to pay bills Using savings to pay current bills Failing to manage float and interest income
6 Banking Services Obtain cash Deposits/checks Check account balances Transfer funds Direct deposit of paychecks and other regular income Preauthorized payments Currency conversion 7 The U.S. Dollar A strong U.S. dollar buys more foreign goods, but U.S. exports are more expensive to other countries (fewer exports and U.S. jobs). Imports are cheaper to buy (think made in China, shipped to Walmart) A weak U.S. dollar buys fewer foreign goods, but U.S. exports are cheaper to other countries (more exports and U.S. jobs). Imports are more expensive (possibly causing inflation).
Tip: Take foreign vacations where the U.S. dollar is strong
8 Foreign Currency Conversion
Direct: U. S. Indirect: Number Dollars Required of Units of Foreign to Buy One Unit of Currency Per U. Foreign Currency
Euro € S. Dollar (1/x) 1.4920 .6702 Fee illustration, market rate:
US $3,000 times .6702 = € 2,010.60 times 97% (3% fee) = € 1,950.28 No fee illustration,...
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- Spring '14