Which of the Following Is NOT a Disadvantage of Controls

question 84

Multiple Choice

Which of the following is NOT a disadvantage of controls on capital outflows?

• A)The controls may lead to excessive risk taking by the domestic banks.
• B)They are seldom effective during a crisis.
• C)Capital flight may increase after they are put in place.
• D)Controls often lead to an increase in government corruption.

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Definitions:

Variable Interests

Interests in an entity that change based on changes in the entity's net asset value, income, or cash flows.

Lease Residual Value

The estimated value of a leased asset at the end of the lease term.

Loss on Sale

Occurs when the sale price of an asset is less than its carrying amount on the books.