Use the Following Information for Questions -What Is 1^st State's Efficiency Ratio?
A) 2

question 85

Multiple Choice

Use the following information for questions .
1 st State Bank Balance Sheet Assets
$\begin{array}{lrr}\text { Cash and Due from Banks } & \$ & 50 \\\text { Investments } & \$ & 300 \\\text { Federal Funds } & \$ & 10 \\\text { Loans } & \$ & 350 \\\text { Premises } & \$ & 90\\\text { Average Total Assets }&\$&800\\\\\text { Liabilities \& Equity }\\\text { Demand Deposits } & \$ & 100 \\\text { Time Deposits } & \$ & 300 \\\text { Federal Funds } & \$ & 300 \\\text { Equity } & \$ & 100\\\text { Average Total Liabilities \& Equity }&\$&800\\\\\text { Income Statement }\\\text { Interest Income } & \$ & 100 \\\text { Interest Expense } & \$ & 75 \\\text { Non-Interest Income } & \$ & 5 \\\text { Non-Interest Expense } & \$ & 25\\\text { Net Income }&\$&5\end{array}$
-What is 1^st State's efficiency ratio?

• A) 2.53%
• B) 17.51%
• C) 0.83%
• D) 0.45%
• E) 83.3%

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