A Case for Capital Inflow Controls Can Be Made Because

question 114

Multiple Choice

A case for capital inflow controls can be made because capital inflows

• A)can cause a lending boom and lead to excessive risk taking.
• B)never finance productive investments.
• C)always finance productive investments.
• D)are less likely to cause financial crises than regulation of banking activities.

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Definitions:

Net Cash Flows

The difference between a company's cash inflows and outflows within a specific period.

Decrease in Accounts Receivable

A reduction in the amount of money owed to a business by its customers for goods or services delivered on credit.

Non-Operating Gains

Income from activities not related to a company's core operations such as profits from investments, property sales, or currency exchange.

Retirement of Notes Payable

The process of paying off or settling a debt obligation represented by promissory notes.