The Quantity Defined as Interest Income Minus Interest Expenses Divided

question 57

Multiple Choice

The quantity defined as interest income minus interest expenses divided by assets is a measure of bank performance known as ________.

• A) operating income
• B) net interest margin
• C) return on assets
• D) return on equity

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Definitions:

Highly Inelastic

Describes demand that is hardly responsive to changes in price, typically for necessities where consumption does not decrease significantly with a price increase.

Total Profit

The overall financial gain made by a business after subtracting all expenses from total revenue.

Graph

A diagram representing a system of connections or interrelations among two or more things by a number of distinctive dots, lines, bars, etc.

Rectangle

A four-sided polygon with four right angles and opposite sides of equal length.