on 6 The largest expense item often observed in the financial statement of the banks is: ed out of a. premises and equipment cost. O b. interest on borrowed funds. on O c. provision for loan loss. O d. personnel cost. on 7 Banks depend heavily upon borrowed funds supplied by customers with little owners' capital invested. This means that banks make heavy use of: ed out of O a. capital restructuring. O b.margin borrowing. O c. operating leverage. on O d. financial leverage. on 8 et red You know the following information about the Davis National Bank. Total interest expenses $500 Total noninterest income 100 Securities gains (losses) 50 Income taxes 80 d out of