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

Quizplus · Accepted Answer

Market interest rate movements are not influenced by the bank's policy decisions as they are determined by external economic factors such as government regulations and global financial conditions. The other factors listed are all influenced by the bank's policy decisions.

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