To Avoid the Imposition of Capital Controls, a Government Wishing

question 127

Multiple Choice

To avoid the imposition of capital controls, a government wishing to keep its exchange rate at a certain level, may rely on:

• A) forbidding all sales or purchases of foreign currency.
• B) asking the large banks to keep the prices at a certain level.
• C) asking for loans from the International Monetary Fund (IMF).
• D) intervention in the foreign exchange market to raise or lower the exchange rate.

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Definitions:

Racketeering

Engaging in illegal business activities, often as part of an organized crime group, including fraud, extortion, and money laundering.

Criminal Actions

Legal proceedings brought by the state against an individual or corporation for conduct considered offensive against society as a whole.

Fraud

Wrongful or criminal deception intended to result in financial or personal gain.

Scienter

A legal term referring to the knowledge of the wrongful nature of one's own act or omission.