A Bank's Return on Assets (ROA) Could Be Lower Than

question 31

Multiple Choice

A bank's return on assets (ROA) could be lower than desired because of all of the following except:

• A) the bank has experienced heavy loan losses.
• B) the bank was locked into fixed-rate loans prior to a rise in market interest rates.
• C) the bank is receiving a relatively small amount of noninterest income.
• D) the bank has reduced its noninterest expenses.

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Definitions:

Protective Legislation

Refers to laws and regulations put in place to ensure the safety, health, and welfare of workers in the workplace.

Union Representation

The process by which a union serves as the intermediary in negotiations between its members and their employer, defending the interests of the workforce.

Employee Empowerment

A management philosophy focused on giving employees the tools, resources, and autonomy to take initiative and make decisions in their roles.

Employment Relationship

The legal link between employers and employees that arises when a person performs work or services under certain conditions in return for remuneration.