Which of the Following Is NOT an Effective Tool Used

question 215

Multiple Choice

Which of the following is NOT an effective tool used by government to promote economic growth?

• A) a strong legal system to enforce contracts
• B) trade barriers to protect domestic industries
• C) a stable currency and financial system
• D) investing in infrastructure and human capital

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Definitions:

Creditor

An entity (person or institution) to which money is owed.

Discounted Note

A financial instrument that is sold for less than its face value and matures at face value, resulting in a gain for the holder upon maturity.

Interest-Bearing Note

A debt instrument that requires the issuer to pay a specified interest rate to the holder until the note is repaid.

Installment Note

A financial instrument that details a loan to be repaid with interest in periodic payments over a set period.