Government restrictions on the amount of a particular country's currency that can be bought or sold are known as
A) embargoes.
B) quotas.
C) exchange controls.
D) import controls.
E) balance of trade controls.

Question

Quizplus · Accepted Answer

Exchange controls refer to the government regulation on the amount and direction of foreign exchange transactions that can be made by individuals, companies or banks. It involves imposing restrictions or limitations on the purchase and sale of foreign currencies to control the movement of capital in and out of a country. Embargoes refer to restrictions on trade, while quotas and import controls refer to limitations on the quantity of goods or services that can be imported or exported. Balance of trade controls refer to policies that aim to improve a country's balance of trade, by encouraging exports and reducing imports.

Government Restrictions on the Amount of a Particular Country's Currency