For a financial intermediary, the excess of interest earned on loans over the interest paid to depositors and other costs is best described by which of the following?

Question

Quizplus · Accepted Answer

The excess of interest earned on loans over the interest paid to depositors and other costs is commonly known as net interest income. If the net interest income is positive, it represents profit for the financial intermediary. Therefore, choice C, profit, is the correct answer.

For a Financial Intermediary, the Excess of Interest Earned on Loans