Which of the Following Is NOT a Financial Instrument That

question 9

Multiple Choice

Which of the following is NOT a financial instrument that may be included in an international trade transaction?

• A) Letter of Credit
• B) Sight Draft
• C) Order bill of lading
• D) Federal funds transaction

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Definitions:

Two-part Tariff

A pricing strategy that includes a fixed fee plus a variable fee based on consumption or usage level.

Marginal Cost

The financial outlay required to produce a further unit of a product or service.

Demand

Demand refers to the quantity of a product or service that consumers are willing and able to purchase at various prices during a given time period.

Inverse Demand Curve

A representation of the demand for a good showing the maximum price consumers are willing to pay for a given quantity.