Which One of the Following Is the Definition of the NIM

question 6

Multiple Choice

Which one of the following is the definition of the NIM?

• A)(Net interest income − Net noninterest income)/Earning assets
• B)Net interest income/Interest-bearing liabilities
• C)(Interest income − Interest expense)/Earning assets
• D)(Interest income − Interest expense)/Interest-bearing liabilities
• E)(Interest income/Earning assets)− (Interest expense/Interest-bearing liabilities)

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Definitions:

Theorists

Individuals who formulate theories or concepts in a particular field of study or aspect of human behavior.

Organic Structures

Organic structures refer to flexible, adaptive organizational structures that are characterized by low levels of formalization, decentralized decision-making, and a broad scope of control.

Mechanistic

Pertains to organizational structures that are highly formalized and centralized, with strict hierarchies and clear, rigid procedures.

Authority

The power or right to give orders, make decisions, and enforce obedience, often established by a position in a hierarchical organization.