If the Average Net Interest Margin for This Type of Bank

question 53

Multiple Choice

If the average net interest margin for this type of bank is 4.65%, then, ceteris paribus, this particular bank is performing

• A) the same as average because this bank has a NIM of 4.65%.
• B) better than average because this bank has a NIM of 6.55%.
• C) poorer than average because this bank has a NIM of 4.08%.
• D) better than average because this bank has a NIM of 5.23%.
• E) One can't determine with the information given. NIM = (450 + 95 - 246)/(1925 + 5400) = 4.08%

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