The Third National Bank of Edmond Reports a Net Interest

question 21

Multiple Choice

The Third National Bank of Edmond reports a net interest margin of 5.83 percent.It has total interest revenues of $275 million and total interest expenses of $210 million.This bank has earnings assets of $1,115.Suppose this bank's interest revenues rise by 8 percent and its interest expenses and earnings assets rise by 10 percent next year,what is this bank's new net interest margin?

• A)5.83 percent
• B)7.09 percent
• C)3.59 percent
• D)5.38 percent
• E)7.80 percent

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Definitions:

Market Transactions

Actions that involve the exchange of goods or services for money, conducted within a marketplace.

GDP

Known as Gross Domestic Product, it is the sum of the market or money value of all produced finished goods and services within the territorial limits of a country in a given time span.

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of all goods and services produced by an economy in a given year in real terms.

Final Good

A product or service that is consumed by the end-user and does not require further processing or manufacturing.