Multiple choice general knowledge sports

In context with the banking, Intermediation cost refers to which among the following?

  1. Payments to and provisions for employees

  2. Total operating expenses

  3. Total non-interest expenses

  4. None of them
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Intermediation cost in banking refers to the cost incurred by banks in their role as financial intermediaries between savers and borrowers. It includes all operating expenses such as staff costs, administrative expenses, and overheads. Total operating expenses best captures this comprehensive cost of intermediation services.

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