A Restriction Placed on the Amount of a Product Allowed

question 246

Multiple Choice

A restriction placed on the amount of a product allowed to enter or leave a country is referred to as a(n)

• A)quota.
• B)tariff.
• C)WTO tax.
• D)subsidy.
• E)excise tax.

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Definitions:

Convertible Bonds

Corporate bonds that have a provision that they may be converted to a designated number of shares or to a designated value of the corporation’s stock.

Face Value

The dollar amount written on a note; it is the same as the amount borrowed, or the principal. With regard to corporate and government bonds, the amount that will be paid to the holder when a bond is redeemed at maturity.

Common Stock

The usual type of stock issued by a corporation, often with different rights compared to preferred stock.

Callable Bond

A type of bond that gives the issuer the right to pay off the debt before its maturity date under certain conditions, often at a defined call price.