A Numerical Limit Imposed by a Government on the Quantity

question 56

Multiple Choice

A numerical limit imposed by a government on the quantity of a good that can be imported into the country is called a

• A)tariff.
• B)quota.
• C)quantity floor.
• D)barricade.

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Definitions:

Present Value

The present value of a sum of money or series of cash flows expected in the future, discounted at a certain rate of return.

Amortized Loan

A loan repaid in equal periodic amounts (or “killed off” over time).

Repayment Of Principal

The process of paying back the original amount borrowed in a loan, excluding any interest charges.

Effective Annual Return

The interest rate on an investment on an annual basis, accounting for the effect of compounding more than once per year.