A Bank's Net Interest Margin Is Commonly Defined as

question 65

Multiple Choice

A bank's net interest margin is commonly defined as

• A)interest revenues minus interest expenses.
• B)(interest revenues minus interest expenses)/total assets.
• C)(interest revenues minus interest expenses)/total liabilities.
• D)(interest revenues minus interest expenses)/capital.

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Definitions:

Ending Balance

The amount of money or value in an account at the end of a financial period.

Cash Dividend

A payment made by a company out of its profits to its shareholders, usually in the form of cash.

Bonds Payable

Long-term liabilities represented by bonds that a company has issued, which it is obligated to pay back at a future date along with interest payments.

Financing Activities

Transactions related to a company's raising and repaying of funds, including issuing debt, obtaining loans, and returning capital to shareholders.