Explicit capital controls are
A) used by most industrialized countries.
B) an important reason why domestic and foreign assets are not perfect substitutes.
C) less important than information barriers as an obstacle to the international diversification of portfolios.
D) the most important reason why interest rates differ internationally on assets with similar risk and liquidity characteristics.
Correct Answer:
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Q24: Why may a central bank intervene in
Q25: Which of the following will NOT result
Q26: Why may a central bank intervene in
Q27: If the Fed conducts an open market
Q28: A sterilized intervention will not affect the
Q30: An unsterilized intervention in which the central
Q31: A central bank might attempt to offset
Q32: If a central bank wishes to raise
Q33: If the central bank buys foreign assets,
A)the
Q34: The equilibrium exchange rate
A)is determined by the
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