A(n)_____ Is a Law That Compels a Company Earning Foreign

question 142

Multiple Choice

A(n) _____ is a law that compels a company earning foreign exchange from its exports to sell it to a control agency,usually a central bank.

• A) tariff
• B) quota
• C) fiscal prerequisite
• D) exchange control
• E) transfer barrier

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Definitions:

Binding Price Floor

A government-imposed price control that sets a minimum price for a good or service above the equilibrium price, leading to excess supply.

Surplus

The excess of production or supply over demand, often leading to lower prices or wasted resources if not managed effectively.

Binding Price Floor

A government-imposed price control or limit on how low a price can be charged for a commodity, set above the equilibrium price, leading to a surplus of the product.

Surplus

A situation where the quantity of a product or service exceeds the quantity demanded, often leading to lower prices or wasted resources.