Net interest income is the difference between gross interest income and interest expenses and is measured as a percentage of
A)liabilities.
B)shareholder's equity.
C)assets.
D)revenues.

Question

Quizplus · Accepted Answer

Net interest income represents the profitability of a bank's core lending and borrowing activities, and is therefore calculated based on the size of its assets. It is important to note that net interest margin (NIM), which is a more commonly used metric in banking, measures net interest income as a percentage of interest-earning assets, not total assets.

Net Interest Income Is the Difference Between Gross Interest Income