1. An FI has estimated the following annual costs for its demand deposits: management cost per account...

Question:

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?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: