If a Country Has an Externally Convertible Currency

Multiple Choice

If a country has an externally convertible currency:

A) neither residents nor nonresidents are allowed to convert it into a foreign currency.
B) both residents and nonresidents can purchase unlimited amounts of a foreign currency with it.
C) only nonresidents may convert it into a foreign currency without any limitations.
D) when the government limits convertibility to preserve their foreign exchange reserves.