An Excise Tax That Is Applied to an Imported Product

question 163

Multiple Choice

An excise tax that is applied to an imported product that is not at all produced domestically is called a(n)

• A) protective tariff.
• B) revenue tariff.
• C) import quota.
• D) nontariff barrier.

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Definitions:

Zero-Coupon

A type of bond that does not pay periodic interest payments and is instead sold at a discount to its face value, with the full face value received by the holder at maturity.

Yield To Maturity

The total return anticipated on a bond if the bond is held until its maturity date, taking into account its current market price, face value, interest payments, and time to maturity.

Duration

A measure of the sensitivity of a bond's or fixed income portfolio's price to changes in interest rates, expressed in years.

Maturity

Is the expiration date of a financial instrument, at which point the principal (or final interest payment) is repaid to the investors.