If a Country Has an Externally Convertible Currency

question 96

Multiple Choice

If a country has an externally convertible currency:

• A) neither residents nor nonresidents are allowed to convert it into a foreign currency.
• B) both residents and nonresidents can purchase unlimited amounts of a foreign currency with it.
• C) only nonresidents may convert it into a foreign currency without any limitations.
• D) when the government limits convertibility to preserve their foreign exchange reserves.

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Slippery Slope

A fallacy in reasoning that suggests taking a minor action will lead to major and oftentimes undesirable consequences.

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Small gifts, often money, given in appreciation for service, which can sometimes raise ethical concerns in professional relationships.

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A body of officers representing the civil authority of government, responsible for maintaining public order and safety, enforcing laws, and preventing, detecting, and investigating criminal activities.