Residents of a South American country are not allowed to convert their currency into other currencies. However, all foreign businesses with deposits in banks there may, at any time, convert all their currency into foreign currency and take it out of the country. The currency in this country is

Question

Quizplus · Accepted Answer

The currency is externally convertible because foreign businesses can convert it into foreign currency, but residents cannot.

Residents of a South American Country Are Not Allowed to Convert