Which of the Following Happens When Governments Typically Impose Convertibility

question 96

Multiple Choice

Which of the following happens when governments typically impose convertibility restrictions on their currency out of the fear that free convertibility will lead to a run on their foreign exchange reserves?

• A)Deflation
• B)Stagflation
• C)Liquidity rush
• D)Capital flight

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Definitions:

Lateral Hypothalamus

Part of the hypothalamus gland in the brain, believed to control hunger and thirst by regulating the body's perception of the need to eat or drink.

Pancreas

A glandular organ in the digestive and endocrine system of vertebrates, producing enzymes and hormones such as insulin to aid in digestion and blood sugar regulation.

Weight Gain

An increase in body weight. This can result from the accumulation of body fat, muscle mass, or fluid retention.

Insulin Levels

The concentration of insulin in the bloodstream, which is central in regulating carbohydrate and fat metabolism in the body.