13-51 Fees from derivative products are an increasing component of noninterest income for many FIs.

Question

Quizplus · Accepted Answer

This statement is true. Many financial institutions generate revenue from fees associated with selling and trading derivative products, which are a type of financial instrument whose value is based on an underlying asset or market factor. As more customers seek out these products, they can become an increasingly important source of noninterest income for banks and other FIs.

13-51 Fees from Derivative Products Are an Increasing Component of Noninterest