Chapter 7 - Relationship Management and Vendor Selection
What is the earnings credit the company is receiving for this month? "A. $4,577.05 " B. $457.71 C. $449.38 D. $503.48
B. $457.71
Which of the following is a tool that companies use to obtain a quantitative rating of a financial institution s level of service? A. Relationship review B. Score card C. Service agreement D. CAMELS rating
B. Score card
"Earnings Credit calculation: Assumptions Average ledger balance $1,500,000 Deposit Float $250,000 Reserve Requirement 10% Earnings Credit Rate 45 bps Service Charges for the month $12,500 Days in the Month 30. What is the earnings credit the company is receiving for this month? " A. $416.10 "B. $4,160.96 " C. $449.38 D. $457.71
A. $416.10
"A cash manager at a retailer forecasts a positive collected cash position for the end of the current day. The company has an overdraft facility at 10%, a separate investment account earning 8% before taxes, an earnings credit rate of 8% and an outstanding single payment note at 9.5% maturing in 1 week. This month s bank service fees are expected to exceed the earnings credit. Which of the following intra-day options would be the MOST economically positive for the company? " A. Leave the funds in the account B. Redeem the single payment note C. Prepay administrative expenses D. Transfer funds to the investment account
A. Leave the funds in the account
Establishing the authority to open bank accounts is the responsibility of: A. The board of directors B. The CFO C. The treasurer D. The board of governors
A. The board of directors
