Which of the Following Statements Is True

question 12

Multiple Choice

Which of the following statements is true?

• A)The net interest margin is a profitability indicator and is measured as net income divided by earning assets.
• B)The net interest margin is a profitability indicator and is measured by interest income minus interest expense, divided by earning assets.
• C)The net interest margin is a profitability indicator and is measured by interest income plus interest expense, divided by earning assets.
• D)The net interest margin is a profitability indicator and is measured as interest income minus non-interest income divided by total assets.

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Definitions:

Payments

Transactions or transfers of money in exchange for goods or services, or as fulfillment of obligations.

Interest Rate

The fee, indicated as a percentage of the principal, that a borrower incurs from a lender for availing themselves of resources.

Train Sets

Collections of rail vehicles that form a complete train, often designed to operate together and include locomotives and passenger or freight cars.