For banks, net interest income is becoming a __________ proportion of their total operating income as the banks are __________ nontraditional sources of revenue.

Question

Quizplus · Accepted Answer

Net interest income refers to the difference between the interest earned on loans and investments and the interest paid out to depositors and other creditors. As banks are diversifying their sources of revenue and offering more nontraditional services to customers, such as wealth management and advisory services, net interest income is becoming a smaller proportion of their total operating income. Therefore, the answer is A, rising proportion and shifting into nontraditional sources of revenue.

For Banks, Net Interest Income Is Becoming a __________ Proportion