The Efficiency Ratio Measures

question 69

Multiple Choice

The efficiency ratio measures:

• A) a bank's ability to control interest expense.
• B) a bank's ability to control non-interest expense.
• C) a bank's spread.
• D) a bank's burden.
• E) a bank's operating leverage.

Understand and apply concepts of speed and efficiency in work-related contexts.

Understand how to calculate the percentage by which revenue exceeds operating expenses given the percentage of operating expenses to revenue.

Comprehend the relationship between the numerator and denominator in a fraction and their impact on the fraction's value.

Demonstrate proficiency in percentage calculations related to financial and mathematical contexts.

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Definitions:

DDT

Dichloro-Diphenyl-Trichloroethane, a synthetic insecticide used historically for malaria and pest control, now banned in many countries due to environmental impact.

Nitrogen Cycle

A biogeochemical cycle that describes the transformations of nitrogen and nitrogen-containing compounds in nature.

Nitrogen Fixation

The process by which nitrogen gas from the atmosphere is converted into ammonia by certain bacteria, making nitrogen available to living organisms.

Denitrification

A microbial process occurring mostly in soil and aquatic environments, where nitrate is reduced and ultimately produces molecular nitrogen, removing it from the ecosystem.