Lucky Louie is considering a NOW account that requires a $1500 minimum balance and pays .5% interest
What would be the opportunity cost if Louie needs to withdraw the required minimum balance from a savings account paying 2% interest? Compute the opportunity cost for one year.
A) $10
B) $22.50
C) $25
D) $35
Answer: B
Explanation: B) 5% (savings account rate) - 2% (NOW account rate) = 3% × $500 (NOW account minimum) = $15
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a. deducted from the balance per books. b. added to the balance per bank. c. deducted from the balance per bank. d. added to the balance per books.
Which of the following does not qualify as a general reason that good people sometimes behave unethically?
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The time value of money concept focuses on:
A) revenues alone. B) expenses alone. C) cash flows. D) net income.
Which of the following authorizes the federal government to take remedial action in response to a release of hazardous substances into the environment?
a. CERCLA b. Solid Waste Disposal Act c. Resource Conservation and Recovery Act d. Clean Air Act