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Which of the Following Statements Is True

Question 21

Multiple Choice

Which of the following statements is true?


A) The annual all-in-spread (AIS) measures annual fees earned on the loan by the FI less the annual spread between the loan rate paid by the borrower and the FI's cost of funds.
B) The annual all-in-spread (AIS) measures annual fees earned on the loan by the FI plus the annual spread between the loan rate paid by the borrower and the FI's cost of funds.
C) The annual all-in-spread (AIS) measures annual fees earned on the loan by the FI plus the loan rate paid by the borrowers.
D) The annual all-in-spread (AIS) measures annual fees earned on the loan by the FI less the FI's cost of funds.

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