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Which of the Following Statements Is True

Question 1

Multiple Choice

Which of the following statements is true?


A) The net interest margin is a profitability indicator and is measured as net income divided by earning assets.
B) The net interest margin is a profitability indicator and is measured by interest income minus interest expense, divided by earning assets.
C) The net interest margin is a profitability indicator and is measured by interest income plus interest expense, divided by earning assets.
D) The net interest margin is a profitability indicator and is measured as interest income minus non-interest income divided by total assets.

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