A Citizen in a Developing Country with a Currency Policy

Multiple Choice

A citizen in a developing country with a currency policy of convertibility on the current account could engage in all of the following transactions except:

A) purchase foreign currency in order to import a BMW.
B) sell foreign currency resulting from the exports of manufactured t-shirts.
C) purchase foreign currency in order to purchase a U.S. treasury bond.
D) sell foreign currency resulting from the sale of a U.S. treasury bond.