1. An FI has estimated the following annual costs for its demand deposits: management cost per account...
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1. An FI has estimated the following annual costs for its demand deposits: management cost per account $140, average account size $1,500, average number of checks processed per account per month 75, cost of clearing a check $0.10, fees charged to customer per check $0.05, and average fee charged per customer per month $8.
What is the implicit interest cost of demand deposits for the FI?
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Related Book For
Financial Institutions Management A Risk Management Approach
ISBN: 9780077211332
6th Edition
Authors: Anthony Saunders, Marcia Cornett
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