A Bank's Net Interest Margin Includes

question 36

Multiple Choice

A bank's net interest margin includes

• A)noninterest expenses.
• B)noninterest income.
• C)loan losses.
• D)None of these are correct.

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Definitions:

Sales On Account

Revenue generated from customers who purchase goods or services on credit, to be paid at a later date.

Cost Of Goods Sold

Expenses specifically arising from the production of the merchandise a business sells, such as labor and materials.

Acid-Test Ratio

A liquidity ratio that measures a company's ability to pay off its current liabilities with its quick assets without needing to sell inventory.

Balance Sheet

A financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of the firm's financial condition.