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Which One of the Following Is the Definition of the NIM

Question 12

Multiple Choice

Which one of the following is the definition of the NIM?


A) (Net interest income − Net noninterest income) /Earning assets
B) Net interest income/Interest-bearing liabilities
C) (Interest income − Interest expense) /Earning assets
D) (Interest income − Interest expense) /Interest-bearing liabilities
E) (Interest income/Earning assets) − (Interest expense/Interest-bearing liabilities)

Correct Answer:

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