QUESTION 11

Use the following assumptions to determine the monthly earnings credit:

Ledger Balance = $3,000,000

Deposit Float = $300,000

Earnings Credit Rate = 0.70%

Days in the Month = 30

Reserve Requirement Ratio = 8%

	a.	$13,011.4
	b.	$1429
	c.	$1,597
	d.	$15,970

QUESTION 12

Using the information in the previous question, calculate how much the monthly earnings credit would change if the Federal Reserve decided to raise the reserve requirement ratio to 10%

	a.	increase by $43.73
	b.	decrease by $31
	c.	increase by 1, 345
	d.	decrease by 1,345