Free FSOT Exam Braindumps
Foreign Service Officer Test Questions 96–100 (page: 21)

Updated On: 9-Feb-2026
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The difference between a nominal interest rate and a real interest rate is that:

  1. the nominal interest rate is for a fixed period of time
  2. the real interest rate is legally binding
  3. the nominal interest rate includes additional costs financed in a loan
  4. the real interest rate factors in inflation

Answer(s): D



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If a firm desires to improve productivity and expand economic growth over time,the best action to take is:

  1. increase capital expenditure
  2. acquire new technology
  3. avoid any new debt
  4. A and B are equally important

Answer(s): D



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The process of paying of a debt over a fixed period of time with specified payments and interest rates is known as:

  1. fiscal policy
  2. appreciation
  3. amortization
  4. revolving credit

Answer(s): C



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Sales tax, income tax, and property tax can all be examples of:

  1. ad valorem taxes
  2. a posteriori taxes
  3. regressive taxes
  4. per unit tax

Answer(s): A



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Members of management seeking to improve their effectiveness and relationship with employees as well as optimizing the organization's performance, could utilize the appraisal process of:

  1. job rotation
  2. upward feedback
  3. mentoring
  4. executive education

Answer(s): B



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