Which of the Following Are the Two Basic Approaches to Analyzing

question 37

Multiple Choice

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.

---

Definitions:

Capital Balances

The amount of capital that remains in a business after deductions, representing the residual interest in the firm's assets after liabilities have been deducted.

Net Income

The profit remaining after all expenses, taxes, and costs have been subtracted from total revenue.

Ratio

A quantitative relationship between two numbers, often used in financial analysis to assess the performance, liquidity, or solvency of a business.

Capital Account

In macroeconomics and international finance, a component of the balance of payments that records all transactions involving the purchase or sale of assets.