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A Bank's Return on Assets (ROA)could Be Lower Than Desired

Question 29

Multiple Choice

A bank's return on assets (ROA) could be lower than desired because of all of the following EXCEPT


A) the bank has experienced heavy loan losses.
B) the bank was locked into fixed-rate loans prior to a rise in market interest rates.
C) the bank is receiving a relatively small amount of noninterest income.
D) the bank has reduced its noninterest expenses.

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