All of the Following Are Operating Expenses for a Bank

question 124

Multiple Choice

All of the following are operating expenses for a bank except

• A) service charges on deposit accounts.
• B) salaries and employee benefits.
• C) rent on buildings.
• D) servicing costs of equipment such as computers.

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Definitions:

Target Payout Ratio

Percentage of net income paid as a cash dividend.

Constant Ratio

A financial strategy or policy that maintains a fixed proportionate relationship between two or more variables, such as assets and liabilities.

Pro Forma Financial Statements

Financial statements projecting future years' earnings, usually to assess the impact of new projects or acquisitions.

Capital Intensity Ratio

A financial metric that measures the amount of assets needed per dollar of sales; higher ratios indicate a greater investment in assets to generate sales.