The expenses relating to increased technological improvements made by FIs during the last several years has the most impact on which of the following?
A)Interest expense.
B)Noninterest expense.
C)Net income.
D)Provision for loan losses.

Question

Quizplus · Accepted Answer

Technological improvements require investments in new hardware, software, and systems infrastructure, which increase non-interest expenses such as salaries, training, maintenance costs, and other related costs. This can decrease the FI's net income and increase the provision for loan losses due to potential operational risks associated with new technology. Therefore, the most impact is on noninterest expenses.

The Expenses Relating to Increased Technological Improvements Made by FIs