A Bank's Costs Include All of the Following EXCEPT

question 119

Multiple Choice

A bank's costs include all of the following EXCEPT

• A)the interest it pays to depositors.
• B)the interest it pays on its loans or debt.
• C)the cost of providing services.
• D)the fees paid to maintain its reserve at the Federal Reserve.

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Definitions:

Sales Over Cost

It refers to the ratio or difference between the sales generated and the cost of the goods sold, aimed at measuring profitability.

Gross Profit

The income a firm generates once it subtracts the expenses involved in the production and sale of its goods, or the expenses incurred from offering its services.

Income From Operations

The earnings generated from a company's everyday, core business operations.

Single-Step Statement

An income statement format that totals revenues and subtracts expenses to find the net income, using only one step.