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 focuses on the services produced by the institution, while the intermediation approach considers the institution as an intermediary between savers and borrowers, focusing on the assets and liabilities managed by the institution.

Which of the Following Are the Two Basic Approaches to Analysing