The weighted average difference between the interest received on assets and the interest rate paid for liabilities for a bank is the bank's:
A. net interest income.
B. interest rate spread.
C. net interest margin.
D. return on equity.
Answer: B
You might also like to view...
The aggregate demand curve for labor is the
a. vertical summation of the individual firms' demand curves. b. horizontal summation of the individual firms' demand curves. c. horizontal summation of all the individual supply curves. d. vertical summation of the individual firms' supply curves.
If we wanted to consider all the money that had been "multiplied" in the economy, we would think about:
A. M2. B. M1. C. hard money. D. None of these.
Over 17 million American households had a net worth over $1 million. This means:
A. their total income minus expenses was greater than $1 million. B. the Lorenz curve would show $1 million for over 17 million households. C. their assets minus liabilities were greater than $1 million. D. more than $1 million flowed through the accounts of over 17 million households.
Commercial banks increase the supply of money when they purchase either personal IOUs or government bonds from businesses and households.
Answer the following statement true (T) or false (F)