In Developing Countries, It Is Not True That

question 51

Multiple Choice

In developing countries, it is not true that

• A)banks are often viewed with suspicion
• B)at the first sign of economic problems, many bank depositors withdraw their funds
• C)because banks cannot rely on a continuous supply of deposits, banks cannot make loans for extended periods
• D)if financial institutions fail to serve as intermediaries between savers and borrowers, the lack of funds for investment will make growth rates double
• E)the credit provided by banks as a percent of total output is one fifth that in high-income countries

---

Definitions:

Upstream Costs

Expenses incurred in the early stages of the production process, such as research, development, and raw material sourcing.

Downstream Costs

Expenses incurred after the production process, including distribution, marketing, and customer service.

Predetermined Overhead Application Rate

A rate calculated before the accounting period begins, used to allocate overhead costs to products or services based on a certain base.

Direct Labour Cost

The cost that can be directly attributed to the production of goods or services, including wages and benefits for workers who are actively involved in the manufacturing process.