The Interest Rate Will Be Higher

question 6

Multiple Choice

The interest rate will be higher,

• A)the longer the term of the loan.
• B)the less risk associated with the loan.
• C)the lower the processing costs of the loan.
• D)the lower the administrative costs of the loan.

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Definitions:

Trade Barriers

Restrictions imposed by a government on international trade, often to protect domestic industries from foreign competition.

Foreign Sovereign Immunities Act

U.S. legislation that sets the limitations as to whether a foreign sovereign nation (and its political subdivisions, agencies, or instrumentalities) may be sued in U.S. courts.

U.S. Citizens

Individuals who are legally recognized as members of the United States, either by birth or naturalization, with specific rights and obligations.

GATT

The General Agreement on Tariffs and Trade (GATT) was a multilateral agreement aimed at reducing trade barriers and promoting international trade until it was replaced by the WTO in 1995.