An FI's net interest income reflects
A)its asset-liability structure.
B)rates of interest when the assets and liabilities were put on the books.
C)the riskiness of its loans and investments.
D)the cost of its deposit and non-deposit sources of funds.
E)All of the options.

Question

Quizplus · Accepted Answer

Net interest income is affected by all of the options listed. It is influenced by the structure of an FI's assets and liabilities, the interest rates at the time the assets and liabilities were acquired, the riskiness of its loans and investments, and the cost of its funding sources.

An FI's Net Interest Income Reflects