If a Nation Agrees to Set an Upper Limit on the Total

question 261

Multiple Choice

If a nation agrees to set an upper limit on the total amount of a product that it exports to another nation, then this situation would be an example of

• A) an import quota.
• B) a revenue tariff.
• C) a protective tariff.
• D) a voluntary export restriction.

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Definitions:

Yield To Maturity

The total return anticipated on a bond if it is held until its maturity date.

Market Price

The market's ongoing price for the transaction of assets or services.

Basis Point

A unit of measure used in finance to describe the percentage change in value or rate of a financial instrument, equal to 1/100th of 1%.

Coupon Rate

The percentage of face value paid as interest on a bond each year.