A Bank Maintains an Average Clearing Balance of $5,000,000 with the Federal

question 108

Multiple Choice

A bank maintains an average clearing balance of $5,000,000 with the Federal Reserve.The Federal funds rate is currently 6.5 percent.What amount of credit will the bank earn over the reserve maintenance period that can be used to offset any fees charged by the Federal Reserve?

• A)$325,000
• B)$8,357,143
• C)$194,444
• D)$12,639
• E)None of the options is correct

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Definitions:

Male-And-Female Couple Figure

An artistic representation or sculpture that depicts a pair consisting of a male and a female figure, often symbolizing themes of partnership, duality, or unity.

Art Historians

Scholars who study and analyze artworks, focusing on their historical context, meanings, and aesthetics to better understand the cultures and societies that produced them.

Chokwe People

An ethnic group in Central and Southern Africa known for their art, particularly masks and wood carvings, which play a significant role in their cultural rituals.

Mythological Figure

A character that originates from myths, which are traditional stories rooted in a culture's spiritual or religious beliefs, often explaining natural phenomena or human behavior.