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The reserve requirement ratio is 10 assuming 30 days in the

The red wolf center has a monthly ledger balance and deposit float of $200,000 and $25,000 respectively. Regions Bank pays the Red Wolf Center an earnings credit rate of 0.40%. The reserve requirement ratio is 10%. Assuming 30 days in the month, calculate the red wolf’s monthly earnings credit.

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Financial Management: The reserve requirement ratio is 10 assuming 30 days in the

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