Looking at the Net Interest Margin Indicates That the Poor

question 43

Multiple Choice

Looking at the Net Interest Margin indicates that the poor bank performance in the late 1980s

• A) was not the result of interest-rate movements.
• B) was not the result of risky loans made in the early 1980s.
• C) resulted from a narrowing of the gap between interest earned on assets and inters paid on liabilities.
• D) resulted from a huge decrease in provisions for loan losses.

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Definitions:

Quantitative Changes

Changes that can be measured or quantified, typically referring to growth or alteration in size, amount, or degree.

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involves the process of recording or capturing information for the purpose of preserving or providing evidence.

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