Which of the Following Observations Concerning the Production Approach Is

question 66

Multiple Choice

Which of the following observations concerning the production approach is true?

• A)It views FIs' outputs of services as having three underlying inputs.
• B)Labour and capital are the only inputs.
• C)It views the output as being produced by labour, capital and the funds used to produce intermediated services.
• D)Deposit costs are viewed as an input in the banking and non-banking deposit institutions.

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Definitions:

Discounts Own Note

A transaction where a business discounts or reduces the value of its own promissory note, often to raise short-term capital.

Notes Payable

Written promises to pay a specified sum of money, typically to a lender, by a certain date.

Financial Statement

A formal record of the financial activities and position of a business, person, or other entity, typically including the balance sheet, income statement, and cash flow statement.

Normal Balance

The usual balance side (debit or credit) of an account, determined by the type of account, which helps in maintaining the double-entry accounting system.