Question

The business loan pricing method that estimates the before-tax yield expected from the loan by considering the all revenues and expenses associated with a particular borrower and the net amount of loanable funds that the bank must turn over to the borrower, is called the:

A. the cost-plus loan pricing method.

B. the price leadership model.

C. the below-prime market pricing model.

D. customer profitability analysis.

E. None of the options is correct.

Answer

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