From an Analysis on Its Deposits,a Bank Determines That Account

question 2

Multiple Choice

From an analysis on its deposits,a bank determines that account processing and other operating expenses cost the bank $4.15 per month.It has also determined that non-operating expenses on its deposits are $1.65 per month.The bank wants to have a profit margin which is 10 percent of monthly costs.What monthly fee should the bank charge on its deposit accounts?

• A)$6.38 per month
• B)$5.80 per month
• C)$4.57 per month
• D)$4.15 per month
• E)None of the options is correct

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Definitions:

For Deposit Only

An endorsement on a check specifying that the check must be deposited into an account and cannot be cashed directly.

Negotiation

The process of discussing things with others to reach an agreement, compromise, or settlement.

Order

An authoritative command, direction, or instruction, typically issued by a court or by someone in a position of power.

Bearer

A term referring to an individual in possession of a negotiable instrument (such as a check or bond) that is payable to whoever holds it.