Macon Bank Has Interest Revenues of $5 Million, Interest Expenses

question 50

Multiple Choice

Macon Bank has interest revenues of $5 million, interest expenses of $4 million, and assets totaling $20 million. Macon Bank's net interest margin is

• A)$1 million.
• B)- $1 million.
• C)5 percent.
• D)- 5 percent.

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Definitions:

Stocks

Shares of ownership in a company, representing a claim on the company's assets and earnings.

Indefinitely

An unspecified period of time without a predetermined end date.

Annual Rate

The interest rate for a whole year as opposed to a shorter period, commonly used in finance to compare the returns on investments or the cost of loans.

Charlie Company

A designation often used in military or tactical settings to refer to the third company in a given sequence, but may not have a widely recognized definition outside such contexts.