Which Term Correctly Describes the Following Situation? When a Country

question 55

Multiple Choice

Which term correctly describes the following situation? When a country imposes exchange restrictions on its own currency,limiting conversion to other currencies,an MNC's frustrated remittance of profits from a subsidiary would be

• A)blocked funds.
• B)stopped funds.
• C)constipated funds.
• D)money down the toilet.

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Definitions:

Internet

A global network of interconnected computers and servers that enables the exchange of data and communication.

Currency Transactions

Financial activities involving the exchange of one nation's currency for another or the movement of money between currencies.

Financial Institutions

Organizations that conduct financial activities, such as banks, credit unions, brokerage firms, and insurance companies, managing monetary transactions and investments.

Federal Law

Laws passed by the national government of a country, which in the case of the United States, includes statutes enacted by Congress that apply to all states.