While NAFTA Eliminates Many Tariffs Immediately, the Tariffs on More

question 79

True/False

While NAFTA eliminates many tariffs immediately, the tariffs on more sensitive goods, such as glassware, footwear, and some fruits and vegetables, will be phased out over a 15-year period.

---

Definitions:

Fed

Short for the Federal Reserve System, it's the central banking system of the United States, responsible for monetary policy, including regulating banks, managing inflation, and influencing interest rates.

Reserve Requirement

The minimum amount of reserves that a bank must hold against its deposits, as mandated by central banking authorities to ensure liquidity.

Discount Rate

The rate of interest applied to loans given to commercial banks and other financial institutions by their local Federal Reserve Bank's credit facility.

Reserves

refers to funds or materials set aside or saved for future use or emergencies, often in the context of banking or natural resources.