How Can Noninterest Operating Expenses of an FI Be Reduced

question 77

Multiple Choice

How can noninterest operating expenses of an FI be reduced by improved technological efficiency?

• A)By improving the efficiency of management of information flows.
• B)By obtaining access to low cost sources of funds.
• C)By linking services to the quality of the FI's technology.
• D)By innovating new interest earning products.
• E)By complying with all government regulations.

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Definitions:

Buildings

Physical structures owned or used by a business for its operations, considered as a fixed asset on the balance sheet.

Machinery and Equipment

Long-term assets used in the operation of a business, typically for manufacturing, processing, or office operations.

Land

A natural resource that refers to the earth's surface not covered by water, which can be used for agriculture, construction, or as an investment.

Insurance

A financial product that provides protection against losses or damages, typically in the form of a policy for which the insured pays a premium.