Professional Documents
Culture Documents
Thrift deposits, money market accounts, time deposits and savings accounts. Generally rank second to
deman desposits .
Costs from both these accounts are equal per dollar but you earn more from checkable desposits
because of the services offered therefore the net revenue earned is greater in checkable deposits.
In pricin deposits, managements is caught on the horns of an odl dilemma. It needs oto pay a high
enough interest return to attaract customers but also not so much high so that they don’t end up
eroding their profits.
Unit price charged=operating expense per unit of deposit service+estimated overhead expense
allocation+planned profit margin.
Marginal costs.