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.

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Quizplus · Accepted Answer

Net usable funds = Average balance - Float - Required reserves= $420,000 - $21,000 - (10% x $420,000)= $420,000 - $21,000 - $42,000= $359,100

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