The Smoot-Hawley Tariff

question 51

Multiple Choice

The Smoot-Hawley Tariff

• A)lowered U.S.tariffs by 50 percent following World War II.
• B)was passed by the U.S.Congress following the Civil War as a means of increasing government revenue.
• C)was passed by the U.S.Congress upon a recommendation made by the General Agreement on Tariffs and Trade (GATT)in 1948.
• D)raised average tariff rates by over 50 percent in the United States in 1930.

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Definitions:

Volatile

Describes an asset, security, or market characterized by rapid and significant price changes over a short period.

Option

A financial derivative that gives the holder the right, but not the obligation, to buy or sell an asset at an agreed-upon price within a certain period.

Strike Price

The pre-determined price at which the holder of an option can buy (in the case of a call option) or sell (in the case of a put option) the underlying asset.

Exercise Value

The value of an option if it were exercised today, essentially representing the difference between the option’s strike price and the underlying asset's current price.