The United States wants to limit the amount of dollars that another country can obtain. The best way to accomplish this is to
A) impose an import duty.
B) establish a foreign-exchange control.
C) declare an embargo.
D) set an import quota.
E) impose an export duty.

Question

Quizplus · Accepted Answer

The best way to limit the amount of dollars another country can obtain is to establish foreign-exchange controls. This means the government would place restrictions on the amount of its own currency that can be exchanged for U.S. dollars. This would limit the amount of dollars available to the foreign country, which would in turn limit its ability to purchase goods and services from the United States. Import duty, embargo, import quota, and export duty would not directly limit the amount of dollars a country can obtain.

The United States Wants to Limit the Amount of Dollars