5. The efficiency ratio measures: a. a bank's ability to control interest expense. b. a bank's ability to control non-interest expense. c. a bank's spread. d. a bank's burden. e. a bank's operating leverage. 6. A bank's "burden" is defined as: a. net interest income minus non-interest income. b. non-interest income minus non-interest expense. c. non-interest expense minus non-interest income. d. net interest income plus non-interest income. e. interest expense plus non-interest expense. 7. For most banks, which of the following is the largest component of non- interest expense? a. Personnel expenses b. Rent c. Required reserves held at the Federal Reserve d. Electricity e. Depreciation on buildings and equipment 8. When an investment bank commits its own funds to take a risk position in an underlying security, it is known as: a underwriting b. market making c. proprietary trading. d. organizing a market. e. brokering