The Operating Risk Ratio Measures

question 33

Multiple Choice

The operating risk ratio measures:

• A) cost controls versus fee generation.
• B) fee income versus net interest margin.
• C) noninterest expense versus non-interest income.
• D) depositors versus employees.
• E) depreciation versus required reserves.

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Definitions:

Opportunities

Refer to situations where individuals or organizations can exploit conditions to achieve goals or positive outcomes.

Efficient

The most efficient employment of resources to attain the intended result while minimizing waste or exertion.

Better Off

A situation where an individual or group is in a more favorable or advantageous position than before.

Economic Efficiency

A condition in which all available resources are utilized in a way that produces the highest combination of quantity and quality of goods and services.