If a developing country wants to limit the ability of its citizens to purchase foreign assets, but does not want to restrict other international transactions, it would offer:
A)full convertibility.
B)convertibility on the current account.
C)convertibility on the capital account.
D)not allow convertibility of domestic currency into foreign currency.

Question

Quizplus · Accepted Answer

Convertibility on the current account allows for the exchange of currency for transactions related to trade in goods and services, and remittances, without permitting the purchase of foreign assets, which would fall under capital account transactions.

If a Developing Country Wants to Limit the Ability of Its