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The Business Loan Pricing Method That Estimates the Before-Tax Yield

Question 103

Multiple Choice

The business loan pricing method that estimates the before-tax yield expected from the loan by considering the all revenues and expenses associated with a particular borrower and the net amount of loanable funds that the bank must turn over to the borrower,is called the:


A) the cost-plus loan pricing method.
B) the price leadership model.
C) the below-prime market pricing model.
D) customer profitability analysis.
E) None of the options is correct.

Correct Answer:

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