Which of the Following Observations Concerning the Intermediation Approach Is

question 74

Multiple Choice

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

• A)The intermediation approach views FIs' outputs of services as having two underlying inputs.
• B)Labour and capital are the only inputs.
• C)The intermediation approach views the output as being produced by labour, capital and the funds used to produce intermediated services.
• D)Premiums or reserves are viewed as an input in the banking and thrift industries.

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Definitions:

Present Value

The current valuation of a future sum or ongoing cash flows, given a specified rate of interest.

Sales-type Lease

A lease agreement where the lessor recognizes immediate profits on the sale of an asset while retaining its ownership.

Interest Revenue

Income that a company receives from its investments in bonds, loans, or other instruments that earn interest.

Rent Revenue

Income received from leasing out property or equipment.