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What is Average cost of deposits?

Updated: 12/13/2022
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Q: What is Average cost of deposits?
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How do you calculate cost of deposit of banks?

cost of deposits= Interest paid on Deposits/Total deposits


What is the formula to find the average variable cost?

Average Variable Cost = Total Variable Cost/ Quantity Average Cost = Average Fixed Cost + Average Variable Cost Average Cost = Total Cost/Quantity


What does a bank do with deposits made by the average citizen?

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What is negative carry on CRR and SLR?

Negative carry on CRR and SLR balances arises because the return on CRR balances is nil, while the return on SLR balances (proxied using the 364-day Treasury Bill rate) is lower than the cost of deposits. Negative carry on CRR and SLR is arrived at in three steps. In the first step, return on SLR investment was calculated using 364-day Treasury Bills. In the second step, effective cost was calculated by taking the ratio (expressed as a percentage) of cost of deposits (adjusted for return on SLR investment) and deployable deposits (total deposits less the deposits locked as CRR and SLR balances). In the third step, negative carry cost on SLR and CRR was arrived at by taking the difference between the effective cost and the cost of deposits.


average cost?

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Does marginal cost curve always intersect the average cost curve at the average cost curve's lowest point?

When the marginal cost is below the average total costs or the average variable costs,then the AC would be declining.When marginal cost is above the average cost then the average cost would be increasing.Therefore the marginal cost should intersect with the average cost at the lowest point in order to pull the average cost upwards.


What is cost What is the difference between total cost and average cost?

Average total cost is the average of all your costs. This is your Fixed Costs and your Variable costs. Average Variable Cost is the average of your costs that can fluctuate.


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Why has the cost of coal risen?

There are two reasons for the cost of coal to rise. First, inflation causes the cost of everything to rise. Secondly, in mining, you extract the easiest deposits first, and as they are exhausted, you mine the more difficult deposits, which cost more to extract. People have mined coal for thousands of years, and we are gradually going deeper and deeper.


Why is average cost and average variable cost are both you shaped?

the average variable cost curve and average cost curve are u- shaped because of the law of variable proportions.


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