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CTP · Question #454

(Topic 5) Which of the following factors will allow a company to decrease the amount of collected balances required to compensate its bank for services?

The correct answer is A. An increase in the bank's earnings credit rate. See the full explanation below for the reasoning.

Question

  • (Topic 5)

Which of the following factors will allow a company to decrease the amount of collected balances required to compensate its bank for services?

Options

  • AAn increase in the bank's earnings credit rate
  • BAn increase in the bank's reserve requirement
  • CAn increase in FDIC insurance charges
  • DA carry-over of a prior period's deficient balance

How the community answered

(58 responses)
  • A
    72% (42)
  • B
    5% (3)
  • C
    9% (5)
  • D
    14% (8)

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