On a Bank's Income Statement,the Amount Available to Keep as Retained

question 9

Multiple Choice

On a bank's income statement,the amount available to keep as retained earnings or pay to the stockholders in dividends is the bank's

• A) net income.
• B) net operating income.
• C) net extraordinary items.
• D) net interest margin.

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Definitions:

Variable Cost

Costs that vary directly with the level of production or with volume of output.

Inelastic Demand

A market situation where the demand for a product does not significantly change with a change in its price.

Elastic Demand

A situation in which the demand for a product is sensitive to price changes, meaning that a small change in price results in a large change in the quantity demanded.

Fixed Cost

Costs that do not vary with the level of production or sales activities, such as rent or salaries.