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Bank X Obtains Most of Its Funds from NCDs, While

Question 28

Multiple Choice

Bank X obtains most of its funds from NCDs, while Bank Y obtains much of its funds from passbook savings and from demand deposit accounts. Given this information, the net interest margin of Bank X would likely be ____ than that of Bank Y, and noninterest expenses would likely be ____ than that of Bank Y.


A) greater; greater
B) greater; less
C) less; less
D) less; greater

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