Which of the Following Observations Concerning the Intermediation Approach to Measure

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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