Which of the Following Observations Concerning the Intermediation Approach to Measure

question 61

Multiple Choice

Which of the following observations concerning the intermediation approach to measure the cost function of FIs is true?

• A)It views FIs' outputs of services as having two underlying inputs.
• B)Labor and capital are the only inputs.
• C)It views the output as being produced by labor, capital and the funds used to produce intermediated services.
• D)Premiums or reserves are viewed as an input in the banking and thrift industries.
• E)None of these.

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Definitions:

Financing Statement

A document filed to give public notice of a secured party's interest in the debtor's collateral under the Uniform Commercial Code.

Luxury Goods

High-quality and often expensive products that are not essential but perceived as highly desirable within a specific culture or society.

Termination Statement

An amendment to a financing statement which states that the debtor has no obligation to the secured party.

Financing Statement

A Financing Statement is a document filed to give public notice of a secured party's interest in the personal property of a debtor, used mainly in secured transactions.