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:

Ultra-

A prefix meaning beyond, excessively, or to an extreme degree, often used in scientific contexts.

Ante-

A prefix meaning before, used in various terms to indicate precedence in time or order.

Suffix

An addition to the end of a term that changes the grammatical function of the term.

Prefix

A word component added to the beginning of a word root or combining form that typically modifies the remaining part of the term.