The expense ratio is calculated as:
A) total revenue - total operating expenses.
B) total revenue - total operating expenses - taxes.
C) interest expense ratio - non-interest expense ratio - provision for loan loss ratio.
D) asset utilization - expense ratio - tax ratio.
E) interest expense ratio + non-interest expense ratio + provision for loan loss ratio.

Question

Quizplus · Accepted Answer

The expense ratio is calculated by adding together the interest expense ratio, the non-interest expense ratio, and the provision for loan loss ratio. This provides a comprehensive measure of a financial institution's expenses in relation to its operations.

The Expense Ratio Is Calculated As