When an Indian Importing Firm Wants to Import U

question 6

Multiple Choice

When an Indian importing firm wants to import U.S.-made products, it must first secure permission and dollars from the Reserve Bank of India. This type of restriction is known as a

• A) currency devaluation.
• B) foreign-exchange control.
• C) negative foreign exchange.
• D) trade embargo.
• E) quota.

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Definitions:

Democracy

A form of government in which power is vested in the hands of the people and exercised by them directly or through freely elected representatives.

Morality

Principles and beliefs concerning the distinction between right and wrong or good and bad behavior.

Sixteenth Amendment

Constitutional amendment passed in 1913 that legalized the federal income tax.

Graduated Income Tax

A tax system where the tax rate increases as the taxable amount increases, imposing higher rates on higher income earners.