If Interest Rates Do Not Change in the Next 90

question 66

Multiple Choice

If interest rates do not change in the next 90 days,what is this bank's net interest margin?

• A)8 percent
• B)5 percent
• C)4 percent
• D)1.4 percent
• E)3 percent

---

Definitions:

Contribution Margin

The difference between sales revenue and variable costs, indicating how much revenue contributes to covering fixed costs and generating profit.

Manufacturing Margin

The difference between the cost of goods sold by a manufacturing company and its total sales, reflecting the gross margin specific to manufacturing operations.

Absorption Costing

A costing method that includes all manufacturing costs—direct materials, direct labor, and both variable and fixed manufacturing overhead—in the cost of goods sold.

Variable Costing

An accounting method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs, excluding fixed overhead.