Which of These Is the Best Way to Get an Idea

question 8

Multiple Choice

Which of these is the best way to get an idea of how a bank is performing?

• A)Look at the bank's net income on its income statement for the period.
• B)Compare the different components of a bank's income statement to those of all other banks.
• C)Assess the amount of risk the bank is taking from elements on its liability statement.
• D)Compare the different components of a bank's income statement to those of similar banks.

---

Definitions:

Court

A legal institution where disputes are settled, judgments are made, and justice is administered under the law.

Contract

A legally binding agreement between two or more parties that outlines obligations and rights, enforceable by law.

Performance

The execution or fulfillment of terms as specified in a contract, such as the completion of duties or the payment of a sum.

Incidental Beneficiary

A third party who benefits from a contract between two others but does not have contractual rights to enforce that benefit.