______________ Is/are the Primary Revenue Source for a Majority of Banks

question 10

Multiple Choice

______________ is/are the primary revenue source for a majority of banks.

• A) Check-processing fees
• B) Investment income from deposit balances
• C) Loan interest
• D) Earnings credits
• E) Swaps

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Definitions:

Dividend Yield

A financial ratio that indicates how much a company pays out in dividends each year relative to its share price.

Coupon

The interest rate disbursed annually on a bond, indicated as a percent of its face value.

Bond Price

Bond price is the present value of a bond's future interest payments and its redemption value at maturity, which fluctuates with interest rates and the bond's credit rating.

Tax Exempt Equivalent Yield

A calculation that determines the return needed on a taxable bond to make it equivalent to the yield on a tax-exempt bond, factoring in the investor's tax rate.