Which of the following are the two basic approaches to analysing the cost functions of FIs?
A) Basic indicator approach and standardised approach.
B) Standardised approach and advanced measurement approach.
C) Production approach and intermediation approach.
D) Basic indicator approach and advanced measurement approach.

Question

Quizplus · Accepted Answer

The two basic approaches to analyzing the cost functions of financial institutions (FIs) are the production approach and the intermediation approach. The production approach views FIs as producers of services, while the intermediation approach views them as intermediaries between savers and borrowers.

Which of the Following Are the Two Basic Approaches to Analysing