Which of the Following Statements Is True of Embargoes

question 31

Multiple Choice

Which of the following statements is true of embargoes?

• A) An embargo may be placed on one or a few goods or may completely ban trade in all goods.
• B) An embargo is the least restrictive nontariff barrier available.
• C) An embargo is usually employed for economic reasons.
• D) Embargoes are used frequently today because they are easy to implement.

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Definitions:

Captive Finance Company

A financial institution created by a company to provide loans and financial services exclusively to its customers.

Credit Extension

The act of providing a loan or increasing the credit limit available to a borrower, often by a financial institution.

Receivables Financing

A financial practice where a company uses its accounts receivable as collateral to secure funding.

Commercial Paper

Commercial paper is a short-term, unsecured promissory note issued by corporations, typically used for the financing of accounts receivable, inventories, and meeting short-term liabilities.