For developing countries,efforts to prevent speculation and currency crises have included
A) controls on capital flows
B) currency boards
C) dollarization
D) all of the above

Question

Quizplus · Accepted Answer

Developing countries have implemented a range of policies to prevent speculation and currency crises. Controls on capital flows, such as restrictions on financial transactions involving foreign exchange, are one such policy. Currency boards, which link a country's currency to a stable foreign currency and require strict adherence to a predetermined exchange rate, have also been used. Another approach is dollarization, where a country adopts the U.S. dollar as their national currency. All three options - capital controls, currency boards, and dollarization - have been employed in various developing countries to prevent speculation and currency crises. Therefore, the correct answer is D, all of the above.

For Developing Countries,efforts to Prevent Speculation and Currency Crises Have