How can noninterest operating expenses of an FI be reduced by improved technological efficiency?
A)By improving the efficiency of management of information flows.
B)By obtaining access to low cost sources of funds.
C)By linking services to the quality of the FI's technology.
D)By innovating new interest earning products.
E)By complying with all government regulations.

Question

Quizplus · Accepted Answer

By improving the efficiency of management of information flows, the FI can reduce its noninterest operating expenses. This can be achieved through the use of technological solutions such as automated systems for data entry, processing, and reporting. This can result in a reduction in the need for manual labor and associated costs, as well as improved accuracy and timeliness of financial reporting.

How Can Noninterest Operating Expenses of an FI Be Reduced