SI Profitability Declined in the Mid-2000s Due to

question 50

Multiple Choice

SI profitability declined in the mid-2000s due to
I. the yield curve becoming more positively sloped.
II. decreases in the NIM ratio.
III. increases in the NIM ratio.
IV. the yield curve becoming flatter and even inverted.

• A)I and II only
• B)II and III only
• C)II and IV only
• D)III and IV only
• E)I and III only

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Definitions:

Delegation

The act of assigning responsibility or authority from one person or entity to another, typically from a higher to a lower authority.

Obligation

A legal or moral duty to do something or to abstain from doing something.

Donee Beneficiary

A third party who benefits from a contract made between two other parties, specifically where the intent is to benefit the third party.

Creditor Beneficiary

A person or entity that benefits from a contract made between two other parties, particularly where one party promises to pay a debt owed to the beneficiary.