A(n)________ serves to limit the amount of foreign exchange and the exchange rate against other currencies.
A) trade system
B) tariff
C) quota
D) exchange control
E) tariff trade barrier

Question

Quizplus · Accepted Answer

An exchange control serves to limit the amount of foreign exchange that can be acquired or exchanged by residents of a country and also the exchange rate against other currencies. This is usually done by the government to control the flow of foreign exchange and maintain stability in the exchange rate. Tariff (B) and quota (C) are also trade barriers but do not specifically limit foreign exchange or exchange rates. The trade system (A) and tariff trade barrier (E) are broader concepts that may include exchange control but do not specifically refer to it.

A(n)________ Serves to Limit the Amount of Foreign Exchange and the Exchange