Question
Kramerica Industries has a monthly ledger balance of $600,000 and deposit float of $250,000. The First Bank of Rowanville pays Kramerica an earnings credit rate
Kramerica Industries has a monthly ledger balance of $600,000 and deposit float of $250,000. The First Bank of Rowanville pays Kramerica an earnings credit rate of 0.35%. The reserve requirement ratio is 10%. Kramerica's monthly service charges equal $850. The number of days in a month is 30.
17. What is Kramerica's earnings credit?
| a. | $55.47 | |
| b. | $147.95 | |
| c. | $90.62 | |
| d. | $103.56 |
18.
How much will the bank debit from Kramerica's account (for the monthly service charges)?
| a. | $944.52 | |
| b. | $852.05 | |
| c. | $759.38 | |
| d. | $896.44
|
19.
What collected balance is required to ensure that Kramerica's service charges are offset by the earnings credit?
| a. | $3,862,433.86 | |
| b. | $3,603,703.70 | |
| c. | $3,407,407.41 | |
| d. | $3,283,068.78
|
20.
What earnings credit rate would allow Kramerica's service charges to be offset by the earnings credit?
| a. | 2.79% | |
| b. | 5.37% | |
| c. | 3.28% | |
| d. | 4.51% |
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Broadcasting Finance In Transition
Authors: Jay G. Blumler, T. J. Nossiter
1st Edition
0195050894, 978-0195050899
