Why Do Governments Limit Currency Convertibility

question 91

Multiple Choice

Why do governments limit currency convertibility?

• A) to preserve foreign exchange reserves
• B) to spend foreign exchange reserves
• C) to keep domestic companies from investing abroad
• D) to allow nonresidents to convert money to foreign currencies

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Definitions:

Due Process

A legal principle ensuring fair treatment through the normal judicial system, especially as a citizen's entitlement.

Downsizing

The reduction of a company’s workforce to improve efficiency, cut costs, or align with organizational restructuring.

Layoffs

The act of temporarily or permanently removing employees from their positions, often due to economic downturns, restructuring, or other financial pressures on an organization.

Consequential Ethics

An ethical theory that evaluates the morality of actions based on their outcomes or consequences.