The Institutional Investor Index Is Based on

question 94

Multiple Choice

The Institutional Investor Index is based on

• A)spread of the required interest rate on a country's debt over LIBOR.
• B)a number of economic and political factors weighted according to their relative importance in determining country risk problems.
• C)surveys of the loan officers of major multinational banks.
• D)combined economic and political risk on a 10-point (maximum)scale.

---

Definitions:

Overhead Cost

Indirect expenses related to manufacturing or production, which are not directly tied to a specific product, such as rent, utilities, and salaries of managers.

Activity Rates

are used in activity-based costing to allocate costs to products or services based on specific activities requiring the costs, like inspection or setup.

Activity-Based Costing

An approach to costing that apportions overhead and indirect charges to particular activities, ensuring more accurate cost determinations for products or services.

Overhead Cost

Expenses related to the general operation of a business that cannot be directly traced to a specific product or service, such as utilities and rent.