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beks73 [17]
3 years ago
10

Bank A has a higher ROA than Bank B. Both banks have similar interest income to asset ratios and noninterest income to asset rat

ios. We know that
I. Bank A has a higher profit margin than Bank B.
II. Bank A has a higher AU ratio than Bank B.
III. Bank A must have a higher PLL/OI ratio.

A) I only
B) II only
C) I and II only
Business
1 answer:
iren2701 [21]3 years ago
8 0

Answer:

A) I only

Explanation:

We can conclude that bank A will be more profitable than bank B since ROA is a measurement of profitability, and if the banks are operating in a similar manner (both interest income to asset ratios and noninterest income to asset ratios are similar), then the bank with the highest ROA is the most profitable one.

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