When a government sets limits or puts any restrictions on the international flow of currency or payments, these measures are called:
a. forex regulation and restriction.
b. capital controls.
c. safeguard measures.
d. black-market measures.
Ans: b. capital controls.
You might also like to view...
Refer to the table above. The gross domestic product of the country is ________
A) $402,000 B) $452,000 C) $554,000 D) $352,000
Which of the following is money?
A) credit card B) e-checks C) debit card D) checkable deposit E) checks
Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the real GDP and reserve-related (central bank) transactions in the context of the Three-Sector-Model?
a. Real GDP falls, and reserve-related (central bank) transactions remain the same. b. Real GDP and reserve-related (central bank) transactions remain the same. c. Real GDP rises, and reserve-related (central bank) transactions remain the same. d. There is not enough information to determine what happens to these two macroeconomic variables.
In which of the following categories would an agreement to trade currencies in pre-set amounts at a certain date in the future be included?
a. an option b. a futures contract c. a forward contract d. a swap