From the following information relating to a bank, arrive at the prime rate (base rate) on which the bank would base the interest rates on loans.
|
Details (per cent) |
|
|
Capital adequacy Ratio |
10 |
|
Reserve requirements |
15 |
|
Cost of capital |
12 |
|
Cost of deposits |
|
|
Demand deposits* |
3 |
|
Term deposits |
6 |