Question
A bank has following costs for its certain deposit account: Interest cost = 0.3%, Servicing costs = 2.5% of balances, Acquisition costs =0.2% of balances,
A bank has following costs for its certain deposit account: Interest cost = 0.3%, Servicing costs = 2.5% of balances, Acquisition costs =0.2% of balances, and it has no insurance cost. If investable balance of this deposit account is 85%, what is marginal cost of this deposit (closest to) ?
| 4.5% | ||
| 2.5% | ||
| 3.5% | ||
| 4.0% |
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Public Finance Administration
Authors: B. J. Reed, John W. Swain
2nd Edition
0803974051, 978-0803974050
