To Avoid the Imposition of Capital Controls, a Government Wishing

Multiple Choice

To avoid the imposition of capital controls, a government wishing to keep its exchange rate at a certain level, may rely on:

A) forbidding all sales or purchases of foreign currency.
B) asking the large banks to keep the prices at a certain level.
C) asking for loans from the International Monetary Fund (IMF) .
D) intervention in the foreign exchange market to raise or lower the exchange rate.