In the 1980s and 1990s, Chile adopted capital controls that limited the ability of its citizens to buy or sell assets abroad. This action:
A)introduced full convertibility.
B)limited only current account convertibility.
C)limited only capital account convertibility.
D)limited both current and capital account convertibility.

Question

Quizplus · Accepted Answer

Chile's capital controls in the 1980s and 1990s were specifically aimed at regulating capital flows, thus limiting capital account convertibility. These measures did not affect transactions related to the current account, such as trade in goods and services.

In the 1980s and 1990s, Chile Adopted Capital Controls That