Bece Model Questions Vol1 2017 Business Studies Question 5

Practice practical question 5 from the 2017 Bece Model Questions Vol1 Business Studies examination. This question covers Banking, Financial Management, Bank Operations .

Bece Model Questions Vol1 2017 Business Studies Practical
Topics: Banking Financial Management Bank Operations
Question 5 BECE_MODEL_QUESTIONS_VOL1 • 2017 • BUSINESS_STUDIES • practical

A bank branch keeps a daily record of cash transactions for one week. The table below shows the opening balance, cash received, cash paid out and the closing balance for each day. | Day | Opening Balance (₦) | Cash Received (₦) | Cash Paid Out (₦) | Closing Balance (₦) | |-----------|----------------------|-------------------|-------------------|----------------------| | Monday | 200,000 | 50,000 | 30,000 | 220,000 | | Tuesday | 220,000 | 40,000 | 25,000 | 235,000 | | Wednesday | 235,000 | 55,000 | 45,000 | 245,000 | | Thursday | 245,000 | 30,000 | 20,000 | 255,000 | | Friday | 255,000 | 60,000 | 50,000 | 265,000 | | Saturday | 265,000 | 20,000 | 15,000 | 270,000 | | Sunday | 270,000 | 0 | 10,000 | 260,000 | Using the information above, answer the following questions:

Question Parts

( a )
Calculate the average daily balance for the week.
( b )
The bank offers a 4.5 % per annum simple interest on savings accounts. Using the average daily balance as the basis, compute the interest that should be credited to a customer who kept the average balance for the entire year.
( c )
During the week, the bank incurred the following operational expenses: rent ₦15,000, salaries ₦45,000, utilities ₦8,000 and security ₦5,000. Compute (i) the total operating expense for the week and (ii) the expense ratio (operating expense ÷ total cash inflows) expressed as a percentage.
( ) Total operating expense for the week.
( ) Expense ratio as a percentage.

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About This Question

This is Bece Model Questions Vol1 2017 Business Studies Question 5. It is one of the practical questions from the 2017 Bece Model Questions Vol1 Business Studies examination.

The question covers Banking, Financial Management, Bank Operations .

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