The most important metric for a bank is the Net Interest Income (NII) which is the difference between____income and____expense.

Question

Quizplus · Accepted Answer

The Net Interest Income (NII) is the difference between the interest income earned by the bank through its lending activities and the interest expense it pays out on its sources of funding. Therefore, the correct options are those that mention Interest Income and Interest Expense. Choice A describes only Interest Income and Total Expense, which is not the correct combination, and choices B and D do not include the term Interest Expense at all.

The Most Important Metric for a Bank Is the Net