GK
BANKING AWARENESS AND SEBI
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What is the full form of NIM?
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Net Interest Margin
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Net Involution Margin
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Net Involvement Margin
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None of these
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Explanation:
Detailed explanation-1: -Net interest margin ( NIM) is a metric comparing the net interest income created by a financial firm. It is arrived from credit products, such as loans and mortgages, with the outgoing interest it charges to savings account holders and deposit certificates (CDs).
Detailed explanation-2: -Net interest margin (NIM) is a measurement comparing the net interest income a financial firm generates from credit products like loans and mortgages, with the outgoing interest it pays holders of savings accounts and certificates of deposit (CDs).
Detailed explanation-3: -NIM = (Interest Received – Interest Paid) / Average Invested Assets. Or, NIM = ($25, 200 – $10, 000) / $100, 000 = $15, 200 / $100, 000 = 15.2%.
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