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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%
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 |
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