A bank estimates that their average balance on demand deposit accounts is $ 2,500, net of float. Each account costs the bank $ 175 per year in processing costs. The bank collects an average of $ 5 per month on each account in service charges. Assume reserve requirements are 10%. What is the net cost of an average demand deposit ?:

to. 4.8%

b. 4.5%

c. 5.1%

d. 6.8%

They are stable sources of funds that clients are less likely to withdraw when interest rates rise on investments in competing banks.

to. Core Deposits

b. Fed Funds Purchased

c. Term Deposits

d. Jumbo CDs