Amazon's CFO Is Considering the Fees Charged by Two Banks

question 11

Multiple Choice

Amazon's CFO is considering the fees charged by two banks in trying to determine which is best for her firm. First American (FA) charges a flat $0.11 per payment and First Western (FW) requires a minimum compensating balance of $500,000 plus $0.05 per payment. If Amazon's cost of funds is 8.50% and the expected number of payments per year is 900,000, which bank should be chosen and why?

• A) FW; savings = $54,000
• B) FA; savings = $23,000
• C) FW; savings = $11,500
• D) FW; savings = $18,500

---

Definitions:

Targets Of The Immune System

Structures or molecules identified by the immune system as foreign, triggering a response to defend the body against potential harm.

Normal Cells

Cells that have a characteristic appearance and behave in a predictable manner, maintaining basic functions such as growth, replication, and repair in a controlled way.

Cancerous Cells

Abnormal cells that divide uncontrollably and have the potential to invade and spread to other parts of the body, forming growths known as tumors.

MHC Markers

Proteins found on the surface of cells that help the immune system recognize foreign substances, playing a critical role in immune response.