Noninterest income is usually higher for small banks than for money center and large banks because small banks can charge higher rates on loans to small local businesses.

Question

Quizplus · Accepted Answer

Noninterest income is not primarily derived from charging higher rates on loans but from fees and other charges for services. The size of the bank does not directly correlate with the ability to charge higher loan rates to small businesses.

Noninterest Income Is Usually Higher for Small Banks Than for Money