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Question
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.
A. $359,100
B. $396,900
C. $378,000
D. $399,000
E. $438,900
Answer
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