Question

Checking accounts at a local bank carry an average balance of $3,000. The bank turns over its balance 6 times a year.

Answer 1

Answer:

$1500

Explanation:

The average cash is $3000 which is turned over 6 six times a year.

In other words average cash that flowed through the bank on monthly basis is computed thus:

average monthly cash=(average cash *rate of cash turnover)/12months

                                      =($3000*6)/12months

                                       =$1,500.00