The Euromoney Index for a Given Country Currently Is Based

question 19

Multiple Choice

The Euromoney Index for a given country currently is based on the

• A)spread of the required interest rate on that country's debt over LIBOR.
• B)a number of economic and political factors specifically weighted according to their relative importance in determining country risk problems.
• C)a combined economic and political risk survey of economists and political analysts presented on a 100-point scale.
• D)surveys of the loan officers of major multinational banks.
• E)historical default rates of that country's loans.

---

Definitions:

Classical Conditioning

A learning procedure where two stimuli are constantly paired; initially, the second stimulus elicits a response which eventually is elicited by the first stimulus alone.

Vicarious Reinforcement

A process in behavioral psychology where individuals learn through the consequences of actions observed in others, rather than through direct experience.

Shaping

A method of operant conditioning by which successive approximations towards a desired behavior are reinforced.

Operant Conditioning

A learning technique that uses incentives and penalties to influence behavior, thereby affecting the probability of its recurrence.