Which of the Following Is Most Restricted to Flow Across

question 7

Multiple Choice

Which of the following is most restricted to flow across national boundaries?

• A)People
• B)Capital Flows
• C)Financial and Portfolio Investment
• D)Foreign Direct Investment

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Definitions:

Vault Cash

Physical money that is held in banks' vaults, often used to meet day-to-day withdrawal demands and regulatory reserve requirements.

Banking Act

Legislation that regulates the operation of banks, establishes banking practices, and ensures the stability and integrity of the banking system.

Reserve Requirements

Central bank regulations that set the minimum fraction of customer deposits and notes that each commercial bank must hold as reserves rather than lend or invest.

Checking Accounts

Bank accounts that allow for easy access to funds through checks, debit cards, and electronic transfers, used for daily transactions.