In Recent Years the Interest Paid on Checkable and Time

question 120

Multiple Choice

In recent years the interest paid on checkable and time deposits has accounted for around ________ of total bank operating expenses,while the costs involved in servicing accounts have been approximately ________ of operating expenses.

• A) 45 percent; 55 percent
• B) 55 percent; 4 percent
• C) 25 percent; 50 percent
• D) 50 percent; 30 percent

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Definitions:

Interest on Loans

The cost paid by a borrower to a lender for the use of borrowed money, typically expressed as an annual percentage rate.

Direct Method

A cash flow statement preparation method that lists specific cash inflows and outflows relating directly to operations.

Inventory Increase

Occurs when the ending inventory is greater than the beginning inventory, reflecting a net addition to stock through purchases or production.

Accounts Payable

Short-term liabilities of a business that are due to be paid to creditors within a specified period.