In Some Developing Countries,different Exchange Rates Apply to Different Categories

question 91

Multiple Choice

In some developing countries,different exchange rates apply to different categories of transaction,and therefore,_____.

• A)the local currency is not easily convertible to foreign currency
• B)the local currency is very easily convertible to foreign currency
• C)the prices of foreign goods fluctuate widely in the domestic markets
• D)the prices of domestic goods fluctuate widely in the foreign markets
• E)domestic investors are more inclined to invest in foreign assets