American Exports Returned to the U

question 19

Multiple Choice

American exports returned to the U.S. are dutiable except when:

• A) American-made goods are returned to the U.S. not substantially transformed.
• B) component parts that were made in the U.S. and assembled in a foreign country.
• C) articles exported for repair or alteration but not substantial transformation.
• D) all of the conditions above exempt the goods from duties.

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Definitions:

Diversifiable Risk

The risk that a borrower will not pay theinterest and/or principal on a loan as it becomes due. Ifthe issuer defaults, investors receive less than the promised return on the bond. Default risk is influenced byboth the financial strength of the issuer and the terms ofthe bond contract, especially whether collateral has beenpledged to secure the bond. The greater the default risk,the higher the bond’s yield to maturity.

Required Rate

The minimum annual percentage return an investment must earn to be considered a viable option.

Nondiversifiable Risk

A type of investment risk that cannot be mitigated or eliminated through portfolio diversification, often associated with market-wide risks.

Realized Return

The actual gain or loss achieved on an investment over a specific period, taking into account both income and capital gains.