Which of the following factors affecting a bank's gross interest income is NOT influenced by the bank's policy decisions?
A)maturity and rate sensitivity of the bank's assets
B)market interest rate movements
C)the bank's loan rate
D)composition of the bank's assets

Question

Which of the following factors affecting a bank's gross interest income is NOT influenced by the bank's policy decisions?
A)maturity and rate sensitivity of the bank's assets
B)market interest rate movements
C)the bank's loan rate
D)composition of the bank's assets

Quizplus · Accepted Answer

Market interest rate movements are external factors influenced by the broader economic environment, central bank policies, and other external factors, not by an individual bank's policy decisions.

Which of the Following Factors Affecting a Bank's Gross Interest