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:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year, by comparing its current assets to its current liabilities.

Net Working Capital Turnover

A measure of how effectively a company is using its working capital (current assets minus current liabilities) to generate sales.

Total Fixed Assets

The total value of all long-term, tangible assets held by a company for use in production but not for resale.

Long-Term Liabilities

Obligations due to be paid or settled beyond one year, including loans, bonds, lease obligations, and pension obligations.