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Why Does a Government Impose Controls or Restrictions on Converting

Question 154

Multiple Choice

Why does a government impose controls or restrictions on converting domestic currency to foreign currency (capital controls) ?


A) The government is trying to stop the rapid decline in value of the domestic currency.
B) The government wants to speculate on its own currency.
C) The government is trying to suppress international trade.
D) The government is trying to avoid imposing taxes on citizens.

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