Multiple Choice
Why may a "black market" develop in nations in which government has imposed capital controls?
A) All foreign currency purchases and sales are conducted and controlled by the government, and it is illegal to trade privately.
B) Traders are trying to avoid the taxes they must pay on each transaction.
C) The government makes a huge profit on currency trades that the private sector wants access to.
D) None of these explains why a "black market" may develop in these nations.
Correct Answer:
Verified
Correct Answer:
Verified
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