The Average Implicit Interest Rate Can Be Calculated as Follows

question 31

Multiple Choice

The average implicit interest rate can be calculated as follows: the difference between an FI's average:

• A) management costs per account per year and the average fees earned per account per year, multiplied by the average annual size of the account.
• B) management costs per account per year and the average fees earned per account per year, divided by the average annual size of the account.
• C) fees earned per account per year and average management costs per account per year, multiplied by the average annual size of the account.
• D) fees earned per account per year and average management costs per account per year, divided by the average annual size of the account.

---

Definitions:

Double-Barreled

Pertains to questions or statements that address more than one issue, yet allow only for a single response, leading to confusion and unreliable data.

Negatively Worded

Referring to survey or assessment items that are phrased in a way that implies a negative construct.

Closed-Ended Questions

Questions formulated in a way that limits respondents to a set of predefined answers.

Focus Group

A research method that gathers a small, diverse group of people to discuss and give feedback on a specific product or topic.