The Effective Rate of Protection Measures

question 35

Multiple Choice

The effective rate of protection measures

• A) the "true" ad valorem value of a tariff.
• B) the quota equivalent value of a tariff.
• C) the efficiency with which the tariff is collected at the customhouse.
• D) the protection given by the tariff to domestic value added.
• E) the difference between domestic and foreign prices of the import.

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Definitions:

Yield To Maturity

The total return anticipated on a bond if the bond is held until its maturity date, including all interest payments and the repayment of principal.

Capital Gain Yield

The price appreciation component of a stock's total return, excluding dividends, expressed as a percentage of the initial price of the stock.

Par Value

The face value of a bond or stock, as specified by the issuing company, which does not necessarily reflect its market value.

Coupon Rate

The yearly rate of interest that is paid on a bond, represented as a percentage of the bond's nominal value.