How is 'net interest margin' defined?

ACCA Financial Accounting (F3) Certification Practice Exam

Question Number 5

The difference between the income generated from interest-bearing assets and the interest paid on liabilities The total interest income earned on loans The rate at which interest is paid by borrowers The fee charged by banks for managing accounts

✔ Correct Answer:

The difference between the income generated from interest-bearing assets and the interest paid on liabilities

ACCA Financial Accounting (F3) Certification Practice Exam

Question Number 5

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