Suppose Brazil Decides to Restrict the Export of the Real

question 84

Multiple Choice

Suppose Brazil decides to restrict the export of the real by international banks so that the real does not leave the country and reduce currency reserves for repayment of Brazilian debt.This would be in support of which reason for regulating international banks?

• A)Protecting the safety of depositor funds
• B)Promoting stable growth in money and credit
• C)Providing foreign currency controls
• D)Protecting domestic financial institutions
• E)Restricting the outflow of scarce capital

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Definitions:

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A government-imposed limit on how low a price can be charged for a product, aimed to ensure fair conditions for producers.

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