Use the Following Information for Questions
1 St

question 2

Multiple Choice

Use the following information for questions
1 st State Bank Balance Sheet Assets
$\begin{array}{lrr}\text { Cash and Due from Banks } & \$ & 75 \\\text { Investments } & \$ & 400 \\\text { Federal Funds } & \$ & 18 \\\text { Loans } & \$ & 402 \\\text { Premises } & \$ & 105\\\text { Average Total Assets }&\$&1,000\\\\\text { Liabilities \& Equity }\\\text { Demand Deposits } & \$ & 150 \\\text { Time Deposits } & \$ & 325 \\\text { Federal Funds } & \$ & 425 \\\text { Equity } & \$ & 100\\\text { Average Total Liabilities \& Equity }&\$&1,000\\\\\text { Income Statement }\\\text { Interest Income } & \$ & 150 \\\text { Interest Expense } & \$ & 110 \\\text { Non-Interest Income } & \$ & 11 \\\text { Non-Interest Expense } & \$ &38\\\text { Net Income }&\$&13\end{array}$
-What is 1^st State's net interest margin?

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Definitions:

Diastolic Pressure

The lower number in a blood pressure reading, representing the pressure in the arteries when the heart is resting between beats.

Systolic Pressure

The pressure exerted on the arteries when the heart beats, representing the maximum arterial pressure during contraction of the left ventricle of the heart.

Oxygen Deprivation

A condition resulting from an insufficient supply of oxygen to the body that can cause severe health effects.

Stroke

A medical condition where the blood supply to part of the brain is interrupted or reduced, causing brain cells to die due to lack of oxygen.