Which of the following would increase a bank’s Net Interest Margin, assuming all else stays the same?  Choose Two     an increase in the interest rate on its loans     companies paying off some of their loans and the bank using the funds to purchase Treasury bonds     customers switching a portion of their time deposits to demand deposits     the bank issues additional equity and keeps the funds in cash     an increase in the federal funds rate assuming the bank borrows more in the federal funds market than it lends

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Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.