Reasons for a Country to Impose Exchange Restrictions on Its

question 17

Multiple Choice

Reasons for a country to impose exchange restrictions on its own currency, limiting conversion to other currencies include

• A)enticing more foreign investment from MNCs.
• B)for a variety of reasons, the country may find itself short of foreign currency reserves.
• C)creating a home-grown business climate.
• D)all of the above

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Definitions:

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good suppliers are willing to sell.

Mass Transit

Public transportation systems that move large numbers of people within urban and suburban areas.

Price of Gasoline

The cost per unit volume of gasoline, typically measured in dollars per gallon or liters.

Equilibrium Price

The price at which the quantity of a product demanded by consumers and the quantity supplied by producers are equal.