The Criteria Used by the S&P Australian Index Committee to Determine

question 67

Multiple Choice

The criteria used by the S&P Australian Index Committee to determine the constituents of an index are:

• A)market capitalisation, 'free-float', liquidity, shares from a range of sectors and being institutionally tradeable
• B)market capitalisation, 'free-float', liquidity and shares from a range of sectors
• C)market capitalisation, 'free-float' and liquidity
• D)market capitalisation and 'free-float'
• E)market capitalisation.

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Definitions:

Determinant

A factor or variable that decisively affects the nature or outcome of something.

Money Incomes

Earnings received in the form of currency or its equivalent, typically through employment, investments, or transfers like pensions and benefits.

Wage Rates

The amount of money paid to an employee per unit of time, such as an hour or month, for labor or services.

Labor Demand

The total amount of workers that employers are willing and able to hire at a given wage rate in a given period.