Hager Smith,a Customer of Standard Bank,maintains an Average Balance of $420,000.The

question 107

Multiple Choice

Hager Smith,a customer of Standard Bank,maintains an average balance of $420,000.The float from uncollected funds from his balance,accounts for $21,000.The applicable legal reserve requirement at this checking account is 10 percent.Determine Smith's net usable funds.

• A)$359,100
• B)$396,900
• C)$378,000
• D)$399,000
• E)$438,900

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Definitions:

Marginal Cost

The additional expense incurred from producing one more unit of a good or service.

Standardized

Made uniform in form or character, often to enable comparability across different contexts or systems.

Perfectly Competitive

A market structure characterized by many buyers and sellers, free entry and exit, and a homogenous product, leading to no single consumer or producer having market power.

Short Run

A period in economics where at least one factor of production is fixed, and firms can't adjust all inputs.