A Currency Is Said to Be ______________ When Only Non-Residents

question 63

Multiple Choice

A currency is said to be ______________ when only non-residents may convert it into a foreign currency without any limitations.

• A) externally convertible
• B) freely convertible
• C) technically convertible
• D) nonconvertible
• E) internally convertible

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Definitions:

Trust Fund

A legal entity set up to hold property or assets for the benefit of another party, often managed by a trustee.

Rate of Return

The upward or downward adjustment in an investment's value through a defined span, represented as a fraction of the investment's initial expense.

Growing Annuity

A finite number of growing annual cash flows.

Cash Flow Growth Rate

The rate at which a company's cash flow increases over a specified period, indicating the health and profitability of the business.