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:

Account Numbers

Unique identifiers assigned to different accounts in a company's accounting system to organize and track financial transactions.

Accounts

Financial records of a company's transactions, categorized into assets, liabilities, equity, revenue, and expenses.

Generally Accepted Accounting Principles

A set of accounting rules and standards used in the preparation of financial statements to ensure consistency and comparability.

Double-entry System

An accounting technique which records each transaction as both a credit and a debit in different accounts, ensuring the accounting equation remains balanced.