In Some Developing Countries,different Exchange Rates Apply to Different Categories

Multiple Choice

In some developing countries,different exchange rates apply to different categories of transaction,and therefore,_____.

A) the local currency is not easily convertible to foreign currency
B) the local currency is very easily convertible to foreign currency
C) the prices of foreign goods fluctuate widely in the domestic markets
D) the prices of domestic goods fluctuate widely in the foreign markets
E) domestic investors are more inclined to invest in foreign assets