Which of the Following Is Not a Disadvantage of Controls

question 70

Multiple Choice

Which of the following is not a disadvantage of controls on capital outflows?

• A) The controls may lead to excessive risk taking by the domestic banks.
• B) They are seldom effective during a crisis.
• C) Capital flight may increase after they are put in place.
• D) Controls often lead to an increase in government corruption.

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Definitions:

Nations Gained Independence

Countries that have attained sovereignty and independence from colonial or foreign rule.

Hungarian Protest

Refers to various demonstrations or rebellions by the Hungarian people historically, often against government policies or foreign influence.

Discriminatory Policies

Practices or laws that unfairly discriminate against individuals or groups based on race, gender, age, nationality, religion, or other characteristics, leading to unequal treatment or opportunities.

Soviet Control

The political, military, and economic domination by the Soviet Union over various countries, particularly in Eastern Europe, during the Cold War.