Identify the INCORRECT Statement Regarding the Income of ADIs from Intermediation

question 88

Multiple Choice

Identify the INCORRECT statement regarding the income of ADIs from intermediation.

• A)ADIs earn an interest-rate margin.
• B)ADIs also earn fees from their activities as intermediaries.
• C)ADIs fees include account servicing fees and credit card fees.
• D)The net interest margin of ADIs has increased over the last 15 years.
• E)All of these are correct.

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Definitions:

Labour Budget

An estimation of the total cost of labor needed to meet production goals, often part of a company's overall budgeting process.

Selling and Administrative

Expenses associated with the general operations of a business, including costs related to sales, marketing, and the management of the company.

Variable Cost

Costs that vary directly with the level of production or sales volume, such as materials and labor.

Fixed Cost

A cost that does not change with an increase or decrease in the amount of goods or services produced or sold.