AFP
CTP · Question #618
(Topic 7) A bank's reserve requirement on demand deposits is 10%, and its earnings credit rate is 6%. If a company uses bank services amounting to $2,600 and has an excess of $550 in earnings…
The correct answer is D. $709,731. See the full explanation below for the reasoning.
Question
- (Topic 7)
A bank's reserve requirement on demand deposits is 10%, and its earnings credit rate is 6%. If a company uses bank services amounting to $2,600 and has an excess of $550 in earnings credit, what is the average collected balance in the account based on a 30-day month?
Options
- A$123,921
- B$461,889
- C$585,810
- D$709,731
How the community answered
(27 responses)- A7% (2)
- B11% (3)
- C4% (1)
- D78% (21)
Community Discussion
No community discussion yet for this question.