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Net interest income divided by average interest earning assets is the:
ACost income ratio
BCoverage ratio
CNet Interest Margin
DNet Interest Income
Answer & Solution
Correct answer: C. Net Interest Margin
1. Start with NII.
2. Divide by average interest earning assets.
3. That gives NIM.
_Source: Reserve Bank of India, Glossary (rbi.org.in)._
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