A Bank's Net Interest Margin Is Calculated by Taking Net

question 18

Multiple Choice

A bank's net interest margin is calculated by taking net interest income and:

• A) dividing it by the bank's capital.
• B) dividing it by the bank's assets.
• C) dividing it by the sum of the bank's assets and capital.
• D) subtracting taxes.

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Definitions:

Pervasive

Spreading widely throughout an area or group of people, especially of an unwelcome influence or physical effect.

Remedies

The means by which a right is enforced or the violation of a right is prevented, redressed, or compensated.

Severe Injury

A physical or psychological harm that significantly impacts an individual's health or capability to function.

Legal Sanctions

Penalties or coercive actions that can be imposed by a legal authority in response to noncompliance with laws or regulations.