A Case for Capital Inflow Controls Can Be Made Because

question 114

Multiple Choice

A case for capital inflow controls can be made because capital inflows

• A)can cause a lending boom and lead to excessive risk taking.
• B)never finance productive investments.
• C)always finance productive investments.
• D)are less likely to cause financial crises than regulation of banking activities.

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Definitions:

Standard Price

Standard price is a predetermined cost assigned to materials and goods, used in budgeting and costing calculations.

Actual Price

The real price at which a transaction takes place, unaffected by any discounts or premiums.

Variable Budget

A budget that adjusts spending levels based on changes in actual revenue or other financial indicators.

Variable Costs

Expenses that change in proportion to the activity of a business, such as costs for raw materials or production supplies.