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:

Economic Issues

Matters concerning the production, distribution, and consumption of goods and services, and the management of money and resources.

Representation Activities

Actions undertaken by individuals or groups to act on behalf of others, typically in the context of labor unions representing their members.

Multiple Occupations

Having more than one job or role within a workplace, or across different industries or sectors.

Multiple Workplaces

Refers to employment arrangements where an individual or a group works in more than one location for a single employer.