Suppose a Bank Earned $173 Million in Interest on Its

question 45

Multiple Choice

Suppose a bank earned $173 million in interest on its assets of $2,153 million, it paid out $81 million in interest on its liabilities (excluding capital) of $2,007 million, and it paid its workers $71 million in total compensation.The bank's return on equity is approximately

• A)12 percent.
• B)14 percent.
• C)16 percent.
• D)18 percent.

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Definitions:

Cognitive Structure

The cognitive structures and thought models that people employ to make sense of and categorize information.

Associative Network

Model of memory in which nodes or ideas are connected by associative links along which cognitive activation can spread.

Fuzzy Set

A mathematical concept where an element's membership in a set is graded rather than binary, reflecting real-world ambiguities.

Exemplar

A typical or standard example that represents a larger category or idea.