Developing economies:
A)generally allow their citizens to buy and sell foreign currency freely.
B)are generally committed to full exchange rate convertibility.
C)generally oppose full exchange rate convertibility but are required by the IMF to implement it anyway.
D)generally do not have fully convertible currencies.

Question

Quizplus · Accepted Answer

Developing economies often do not have fully convertible currencies due to concerns about currency stability and the desire to maintain control over their financial systems. Full exchange rate convertibility can expose a country to financial volatility and speculative attacks, which many developing countries prefer to avoid.

Developing Economies