1. A company opening a new bank account wants to determine if the 7.0% earnings credit rate (ECR) offered will be sufficient to offset the bank's monthly service charges. In addition to the service charges, there is a 10% Federal Reserve requirement. In May, the bank charged $950 in fees. The company had an average of $500,000 on ledger balance and an average of $75,000 in deposit float.

What is the total excess earnings credit (service charges due), including service charges?

Note: Round all dollar amounts to whole dollars, and round all other intermediate calculations to four decimal places.

Total excess earnings credit (service charges due) =

1. $950
2. $1,224
3. $1,324
4. $2,274

1. A company wants to determine the required collected balance needed to offset the 10% Federal Reserve requirement and the bank's service charges of $12,000 per month. Their earnings credit rate (ECR) is 5.00%.

For the month of November, what are the collected balances required?

Note: Round all intermediate calculations to four decimal places, and round the final answer to whole dollars.

1. $240,000
2. $2,920,000
3. $3,139,785
4. $3,243,243

1. Hiring an assistant treasurer frees up the treasurer to do which of the following?

1. Perform medium- to long-term financial planning
2. Prepare budgets and financial statements
3. Set corporate credit policies
4. Audit the accuracy of all financial statements