Almost no developing country offers full convertibility because they want to:
A)increase foreign saving to depreciate their currency.
B)limit investment by foreign multinationals.
C)avoid an outflow of domestic saving.
D)encourage domestic residents to save abroad.

Question

Quizplus · Accepted Answer

C) Developing countries often restrict full convertibility to avoid an outflow of domestic savings. This helps maintain domestic investment levels by ensuring that savings are available within the country for investment, rather than being converted into foreign currency and invested abroad.

Almost No Developing Country Offers Full Convertibility Because They Want