Governments in Developing Countries Sometimes Adopt Policies That Retard the Efficient

question 61

Multiple Choice

Governments in developing countries sometimes adopt policies that retard the efficient operation of their financial systems.These actions include policies that

• A) prevent lenders from foreclosing on borrowers with political clout.
• B) nationalize banks and direct credit to politically favored borrowers.
• C) make it costly to collect payments and collateral from defaulting debtors.
• D) do all of the above.
• E) do only A and B of the above.

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Definitions:

Predetermined Overhead Rate

A rate used to apply manufacturing overhead cost to products, calculated before the manufacturing process begins based on estimated costs.

Overapplied Overhead

A situation where the allocated overhead costs exceed the actual overhead expenses incurred.

Machine-Hours

A unit of measure indicating the total time production machinery is operated, used in calculating manufacturing costs and efficiencies.

Cost of Work

This could refer to the total expenses associated with performing a particular job or task, including labor, materials, and overhead costs.