How Can the Operating Income of an FI Be Increased

question 12

Multiple Choice

How can the operating income of an FI be increased by improved technological efficiency?

• A)By improving the efficiency of management of information flows.
• B)By obtaining access to low cost sources of funds.
• C)By linking services to the quality of the FI's technology.
• D)By innovating new interest-earning products.

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Definitions:

Profit Margin Ratio

A financial metric used to evaluate a company's profitability by comparing net income to revenue.

Economic Conditions

The state of a country or region's economy, influenced by factors such as GDP, unemployment rates, and inflation.

Industry Average

A statistical measure that represents the average performance or output of companies within a particular sector or industry.

Adjusting Entries

Journal entries made at the end of an accounting period to update account balances before the preparation of financial statements, ensuring records adhere to the accrual basis of accounting.