Bank A has interest revenues of $4 million, interest expenses of $5 million, and assets totaling $20 million.Bank A's net interest margin is

Name: Bank A has interest revenues of $4 million, interest expenses of $5 million, and assets totaling $20 million.Bank A's net interest margin is
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Net Interest Margin (NIM) = (Interest Revenue - Interest Expenses) / Total Assets
NIM = ($4 million - $5 million) / $20 million = -$1 million / $20 million = -5%
Therefore, the correct answer is D, which is -5%.

Bank a Has Interest Revenues of $4 Million, Interest Expenses