If a bank has net-interest-margin (NIM) of 4% and return-on-assets (ROA) of 0% then: Chose 1 option: -The bank is very profitable since a high NIM also implies a high return-on-equity (ROE). -The bank appears to be utilising its assets efficiently, since a high NIM implies a high asset utilisation (total revenue/total assets) rate. -The bank is making good money since NIM is a key measure of bank profitability. -None of the answers. The bank has ROE equal to zero.

If a bank has net-interest-margin (NIM) of 4% and return-on-assets (ROA) of 0% then: Chose 1 option: -The bank is very profitable since a high NIM also implies a high return-on-equity (ROE). -The bank appears to be utilising its assets efficiently, since a high NIM implies a high asset utilisation (total revenue/total assets) rate. -The bank is making good money since NIM is a key measure of bank profitability. -None of the answers. The bank has ROE equal to zero.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 8P

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