QUESTION 18

A treasury manager needs to move $100,000 from one corporate account to the firm's primary account. Moving the funds by wire will cost $15 while moving the funds by ACH will cost $0.30. The ACH takes 1 day longer to clear. The firm's account earns an earnings credit rate of 0.50%, and the required reserve ratio is 10%. What is the maximum opportunity cost that makes the treasury manager indifferent between the transfer methods?

	a.	4.94%
	b.	6.41%
	c.	5.82%
	d.	7.53%

1 points

QUESTION 19

Which of the following will decrease the minimum transfer amount?

	a.	Decrease in the opportunity cost of funds
	b.	Decrease in the cost of a wire
	c.	Decrease in the cost of an ACH
	d.	Decrease in the opportunity cost of funds