Which of the Following Is Not a Type of Trade

question 103

Multiple Choice

Which of the following is not a type of trade restriction?

• A)low-interest loans to foreign buyers
• B)export subsidies to domestic producers
• C)restrictive health and safety standards
• D)domestic content requirements
• E)economies of scale

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Definitions:

Interest Rates

A finance charge expressed as an annual rate of return or the annual cost of credit or loan, which reflects the time value of money.

Currency Depreciate

A decrease in the value of a currency relative to other currencies in the foreign exchange market.

Currency Appreciate

The increase in the value of one currency relative to another in the exchange rate markets.

Fixed Exchange Rate

Rate of exchange between currencies pegged within a narrow range and maintained by the central bank’s ongoing purchases and sales of currencies.