Question content area top Part 1 Management of cash balance Personal finance Problem Alexis​ Morris, an assistant man

[answerhappygod]

Question content area top
Part 1
Management of cash balance  Personal finance
Problem   Alexis​ Morris, an assistant manager at a local
department​ store, gets paid every 2 weeks by direct deposit
into her checking account. This account pays no interest and has no
minimum balance requirement. Her monthly income is
$4,170.
Alexis has a​ "target" cash balance of around
$1,210​,
and whenever it exceeds that amount she transfers the excess
into her savings​ account, which currently pays
2.3%
annual interest. Her current savings balance is
$15,300​,
and Alexis estimates she transfers about
−$20
per month from her checking account into her savings account.
Alexis​ doesn't waste any time in paying her​ bills, and
her monthly bills average about
$2,100.
Her monthly cash outlay for​ food, gas, and other sundry
items totals about
$880.
Reviewing her payment habits indicates that on average she pays
her bills
10
days early. At this​ time, most marketable securities are
yielding about
4.74%
annual interest. Show how Alexis can better manage her
cash​ balance:
a.  What can Alexis do regarding the handling of her
current​ balances?
b.  What do you suggest that she do with her
monthly​ surpluses?
c.  What do you suggest Alexis do about the manner in which she
pays her​ bills?
d.  Can Alexis grow her investment income by better managing her
cash​ balances?
Question content area bottom
Part 1
a. What can Alexis do regarding the handling of her
current​ balances?  ​(Select the best answer​ below.)
A.
Alexis should transfer her current savings account balances into
the liquid marketable security.
B.Alexis should look for a checking account that pays at
least
2.3%.
C.Alexis should increase her​ "target" cash balance to
around
$1,573.
D.Alexis should lower her​ "target" cash balance to
around
$847.
Part 2
b. What do you suggest that she do with her
monthly​ surpluses?  ​(Select the best
answer​ below.)
A.Alexis should transfer monthly the
−$20
from her checking account to her savings account.
B.Alexis should transfer monthly the
$880
from her checking account to her savings account.
C.Alexis should transfer monthly the
−$20
from her checking account to the liquid marketable security.
D.Alexis should transfer monthly the
$880
from her checking account to the liquid marketable security.
Part 3
c. What do you suggest Alexis do about the manner in which she
pays her​ bills?  ​(Select the best answer​ below.)
A.
Alexis should slow down payments of her bills until they are
due.
B.
Alexis should try to spend less for​ food, gas, and other
sundry items.
C.
Alexis should keep paying her bills as in the past.
D.
Alexis should pay her bills late every other month to increase
her cash flow.
Part 4
d. Can Alexis grow her investment income by better managing her
cash​ balances?  ​(Select from the​ drop-down menu.)
​Alexis' annual earnings
▼
would not
would
grow by following the above recommendations.