A Bank's Spread Equals

question 21

Multiple Choice

A bank's spread equals

• A)the bank's average profit per dollar of assets.
• B)the bank's return on equity.
• C)the average interest rate on all the bank's investments minus the inflation rate.
• D)the average interest rate on the bank's assets minus the average interest rate on its liabilities.

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Definitions:

Economists Employment

The sector or roles within the economy where individuals specializing in economic theories, principles, and models find work opportunities.

Inelastic Supply

A situation where the quantity supplied of a good does not significantly change in response to changes in its price.

Labor Resources

Human workforce available for the production of goods and services.

Short Run

A time period in which at least one factor of production is fixed, limiting the ability of a business to adjust fully to market changes.