To find a bank's return on its assets, we:
A)divide its profits by its capital.
B)divide its profits by its total assets.
C)subtract its total expenses from its total income.
D)divide its total expenses by its total income.

Question

Quizplus · Accepted Answer

Return on assets (ROA) is calculated by dividing a bank's profits (net income) by its total assets. ROA measures how efficient a bank is at generating profits relative to the size of its asset base.

To Find a Bank's Return on Its Assets, We