Question

The earnings spread for a bank is equal to:

A. total interest income divided by total earning assets less total interest expense divided by total interest-bearing bank liabilities.

B. total interest income less total interest expenses divided by earning assets.

C. total operating revenues less total operating expenses divided by total assets.

D. total cash and noncash expenses subtracted from interest and noninterest income divided by total assets.

E. None of the options is correct.

Answer

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