3 years ago

How can gross interest income rise while the net interest margin remains somewhat stable for a particular bank?

1 answer:

4 0

Answer:

A bank acts like an intermediary between depositors and creditors. If the market interest rates increase, gross interest income will rise, but all gross interest expense. They will charge higher rates to borrowers, but also must pay higher rates to depositors. The spread probably remains unchanged because both sides increased.

You might be interested in

Most offers can be revoked even after the offer has been accepted. True False

Jlenok [28]

I'm going with false. Let me know.

6 0

3 years ago

At the onset of the recent economic slowdown, prices at the grocery stores continued to rise. in some cases, products such as mi

zhuklara [117]

The economy was slowing, but prices were rising, signifying the potential for stagflation.
Stagflation is term used in economics to denote economic situation characterized with high unemployment, rising prices, economic growth. This situation occurs when the overall price level rises rapidly. In our case, "the price of eggs was up 40% and milk was up 26%., which means that the prices raised rapidly.

5 0

3 years ago

40. If you could live anywhere, where would it be?

ozzi

Answer:

40. Somewhere peaceful surrounded by nature

42. i am actually not sure

5 0

3 years ago

The fed currently focuses monetary policy on the

kupik [55]

The fed currently focuses monetary policy on the ; Federal funds rate

7 0

3 years ago

Alexander Industries is considering a project that requires an investment in new equipment of $3,200,000, with an additional $16

Yakvenalex [24]

Answer:

The total cost is 3,360,000 and consiste of the proce of the new equipment plus the shipping and installtion cost. In contrast, Alexander's initial investment outlay are liabilities.

Explanation:

acquisition cost + shipping and installation cost = equipment value

3,200,000 + 160,000 = 3,360,000

The increase in liablities, will be that, liabilities, not cost, because is not associate with the equipment being ready to use. The equipment is ready to use, once is installed. so shipping and installment cost should be activated, not the accruals and account payable.

8 0

4 years ago