7. A stock exchange where long-term financial instruments such as stocks and bonds can be bought
and sold refers to _.
ANS: capital markets
PTS: 1 DIF: Difficulty: Easy REF: p. 12
OBJ: LO: 01-02 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Knowledge
8. refers to lowering and/or removing trade barriers such as tariffs, quotas, and subsidies.
ANS: Liberalization of the trading system
PTS: 1 DIF: Difficulty: Easy REF: p. 13
OBJ: LO: 01-02 NAT: BUSPROG: Analytic
STA: DISC: Environmental Knowledge KEY: Bloom's: Knowledge
9. The rules, enforcement mechanisms, and organizations that support market transactions are
called .
ANS: institutions
PTS: 1 DIF: Difficulty: Easy REF: p. 15
OBJ: LO: 01-03 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Knowledge
10. are government organizations that create strong incentives for private investment and
operate under a system of checks and balances.
ANS: Adaptive institutions
PTS: 1 DIF: Difficulty: Moderate REF: p. 15
OBJ: LO: 01-03 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Knowledge
11. A system of responsibility in which an authority, such as the government, is answerable for its
actions refers to _.
ANS: accountability
PTS: 1 DIF: Difficulty: Moderate REF: p. 15
OBJ: LO: 01-03 NAT: BUSPROG: Analytic
STA: DISC: Environmental Influence KEY: Bloom's: Knowledge
12. is a system of full disclosure and openness that aims to avoid any semblance of
corruption and cronyism.
