The Global Scope and Activity of the Global Financial System

question 61

Multiple Choice

The global scope and activity of the global financial system has been made possible in large part by

• A) policies of the World Bank.
• B) new information technologies.
• C) the global decline of communism.
• D) the strength of the U.S. dollar.
• E) structural adjustment programs.

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Definitions:

Variable Costs

Costs that vary in direct proportion to the volume of output or level of activity.

Fixed Costs

Costs that do not change with the level of output or sales, such as rent, salaries, and insurance premiums.

Fixed Costs

Financial obligations like rent, salaries, and insurance that do not vary with changes in production or sales figures.

Utilization Rate

Typically refers to the ratio of currently used resources to the total available resources, often used in the context of credit utilization or operational capacity.