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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Definitions:

Specific Performance

A legal remedy in which a court orders a party to perform a specific act, usually in accordance with a contract.

Money Damages

Financial compensation awarded by a court to a party who has suffered loss or harm due to the actions of another.

Contempt Of Court

An act of disrespect or disobedience towards the court or its officers, which can result in penalties or sanctions.

Violating An Injunction

The act of disregarding or not complying with a court order that prohibits a specific action.