Question
The following quote from the Wall St. Journal discusses one of the 5 components of the nominal interest rate. Which one does it refer to?
The following quote from the Wall St. Journal discusses one of the 5 components of the nominal interest rate. Which one does it refer to?
It might be a totally different story if there were a lot of loan demand, giving banks a place they would much rather put their cash. Banks most profitable assets tend to be floating-rate loans, like credit cards and corporate loans. But demand for borrowing from Americas consumers and businesses remains tepid. For example, card issuers balances in January were about 85% of what they were in December 2019, according to analysts at Wolfe Research. JPMorgan Chase this week actually lowered its 2021 net interest income expectation slightly from when it last gave a forecast, which analysts widely attributed in part to card balances being paid down.
Select one:
a. r*
b. EIP
c. DRP
d. LP
e. MRP
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