Multiple Choice
Whenever nations remove capital controls on their currencies:
A) returns are equalized and arbitrage opportunities disappear.
B) there is no opportunity for trade or arbitrage, and differences in returns disappear.
C) the government sets the returns on its currency, so traders cannot make profits.
D) in those nations, because government has ensured its safety, capital is free to move.
Correct Answer:

Verified
Correct Answer:
Verified
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