5. Your marketing staff encourages you to increase your NOW account rate from 0.10% to 0.25% in order to obtain an increase from $1 billion to $1.15 billion in deposits. The branch managers express concern that the service costs on the new deposits will be $140 per account with an average balance of $1200 per account and service charge revenue will be only $2 per month per account. They argue that CDs at 6% are a cheaper source of funds. If the reserve requirement on interest checking is 11% and on CDs is 2%, which source of deposits is cheaper? (Feds Interest on reserves is 0.50%)