Question: Please answer this multiple choice question about banks and their net-interest-margin. If a bank has net-interest-margin (NIM) of 4% and return-on-assets (ROA) of 0% then:

Please answer this multiple choice question about banks and their net-interest-margin.

If a bank has net-interest-margin (NIM) of 4% and return-on-assets (ROA) of 0% then:

A. None of the answers.

B. The bank appears to be utilizing its assets efficiently, since a high NIM implies a high asset utilization (total revenue/total assets) rate.

C. The bank is making good money since NIM is a key measure of bank profitability.

D. The bank has ROE equal to zero.

E. The bank is very profitable since a high NIM also implies a high return-on-equity (ROE).

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