Which of the following observations concerning the production approach to measure the cost function of FIs is true?
A)It views FIs' outputs of services as having three 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)Deposit costs are viewed as an input in the banking and thrift industries.
E)None of the above.

Question

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The Answer of Which of the following observations concerning the production approach to measure the cost function of FIs is true?
A)It views FIs' outputs of services as having three 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)Deposit costs are viewed as an input in the banking and thrift industries.
E)None of the above.

Which of the Following Observations Concerning the Production Approach to Measure