Question
The firm has a monthly ledger balance of $400,000 and the deposit float is $100,000. The Bank pays the firm an earnings credit rate of
The firm has a monthly ledger balance of $400,000 and the deposit float is $100,000. The Bank pays the firm an earnings credit rate of 0.045%. The reserve requirement ratio is 10%. The firms monthly service charges equal $1200. How much will the bank debit the firms account for the service charge?
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Financial Institutions And Markets
Authors: Jeff Madura
10th International Edition
0538482176, 9780538482172
