Government Restrictions on the Amount of a Particular Country's Currency

question 88

Multiple Choice

Government restrictions on the amount of a particular country's currency that can be bought or sold are known as

• A) embargoes.
• B) quotas.
• C) exchange controls.
• D) import controls.
• E) balance of trade controls.

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Definitions:

Forward Rate

The agreed-upon price for a financial transaction that will occur at a future date, used in contracts for interest rates, commodities, and currencies.

Canadian Security

A financial instrument issued in Canada, such as stocks, bonds, or options, that represents an investment in the Canadian market.

Denominated

Indicates the currency in which a financial transaction is specified or an investment is made.

Expected Return

The anticipated average return on an investment under normal conditions, taking into account both the probability of each outcome and the return of each outcome.