When a Country Imposes Capital Controls,it Is Controlling the

question 33

Multiple Choice

When a country imposes capital controls,it is controlling the

• A) amount of money flowing in or out of the country.
• B) amount of reserves that banks must hold.
• C) portion of bank deposits that must be held at its central bank.
• D) portion of bank deposits that must be used for loans to the government.

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Definitions:

Fund Sustain

The capability to maintain financial resources at a certain level or to ensure the ongoing availability of funds.

Effective Interest Rate

The real cost of borrowing, reflecting the total amount of interest paid over the term of a loan, including the effect of compounding.

Monthly Payment

An amount that is paid every month, typically in the context of loan repayments or rent.

Annual Subscription

A payment or fee paid once a year for membership or access to a service or product.