16-71 Which of the following are the two basic approaches to analyzing the cost functions of FIs?
A)Basic indicator approach and standardized approach.
B)Standardized approach and advanced measurement approach.
C)Production approach and intermediation approach.
D)Basic indicator approach and advanced measurement approach.
E)intermediation 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. These approaches focus on how FIs produce financial services and how they act as intermediaries between savers and borrowers, respectively.

16-71 Which of the Following Are the Two Basic Approaches