The Lower the Interest Expense Ratio,the Provision for Loan Loss

question 38

Multiple Choice

The lower the interest expense ratio,the provision for loan loss ratio,the noninterest expense ratio,and the tax ratio the ________ the ________.

• A)lower; PM
• B)higher; PM
• C)lower; AU
• D)higher; AU
• E)lower; EM

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Definitions:

Quantity Demanded

The sum of a product or service that buyers are prepared and able to buy at a specific price.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, often used to gauge the sensitivity of demand.

Constant Slope

A straight line graph that indicates a uniform rate of change between two variables.

Price-inelastic

Price-inelastic describes a situation where the demand for a good or service is relatively unaffected by changes in its price, indicating that consumers continue to purchase it even if the price increases.