A Currency Is Said to Be Freely Convertible When

question 24

Multiple Choice

A currency is said to be freely convertible when

• A) its exchange rate with respect to other currencies is decided by the central bank of the country.
• B) residents alone are allowed to convert it into a foreign currency without any limitations.
• C) neither residents nor nonresidents are allowed to convert it into a foreign currency.
• D) both residents and nonresidents are allowed to purchase unlimited amounts of a foreign currency with it.

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Definitions:

Judgment

A formal decision or determination made by a court regarding the rights and liabilities of the parties in a legal action.

Sheriff

An elected official in a county or independent city responsible for keeping peace and enforcing the law, often involved with serving legal documents and managing jails.

Subrogation

The legal right for insurers to pursue a third party that caused an insurance loss to the insured.

Guarantor

A person or entity that agrees to be responsible for another's debt or performance under a contract if the original party defaults.