100%(19)19 out of 19 people found this document helpful
This preview shows page 30 - 33 out of 67 pages.
147.Total operating expense is comparable to _________ for a non-financial firm.148.A change in net interest income would occur when:149.A bank that deals primarily with commercial customers is called:f.an Edge Act bank.g.a retail bank.h.a wholesale bank.i.a uniform bank.j.a liability bank.Answer: c150.Relative to retail banks, wholesale banks:151.
Relative to wholesale banks, retail banks:
152.A bank’s equity multiplier measures the bank’s:f.financial leverage.g.operating leverage.h.credit leverage.i.interest rate exposure.j.duration gap.Answer: a153.Return on equity can be decomposed into:154.Return on assets can be calculated as:155.What is the return on equity for a bank that has an equity multiplier of 14, an interest expense ratio of 4%, and a return on assets of .9%?
156.What is the return on equity for a bank that has an equity multiplier of 9, an interest expense ratio of 6%, and a return on assets of 1.2%?157.What is the return on equity for a bank that has an equity multiplier of 12, an interest expense ratio of 5%, and a return on assets of 1.1%?