The Smoot-Hawley Act Introduced

question 90

Multiple Choice

The Smoot-Hawley Act introduced

• A) opportunities for expanding U.S. foreign trade.
• B) the highest tariffs set by the United States in the last 90 years.
• C) a framework promoting international free trade.
• D) revenue tariffs as a major source of U.S. government revenues.

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Definitions:

Foreclosure Rates

The percentage of properties undergoing the process of legal repossession by lenders due to borrowers' failure to make mortgage payments.

Lending Standards

Regulations and criteria set by financial institutions to determine the qualification of borrowers for loans.

Alt-A Loans

Loans extended with little documentation or verification of the borrowers’ income, employment, and other indicators of their ability to repay. Because of this poor documentation, these loans are risky.

Economic Crisis

A situation where an economy faces a sudden downturn brought on by a financial crisis, resulting in high unemployment and inflation.