Capital controls:

Question

Capital controls:

Quizplus · Accepted Answer

Capital controls can involve both inflows and outflows, depending on the specific policy goals and circumstances of a country. While some countries may seek to limit the flow of capital entering their economies, others may implement controls to limit the outflow of funds to prevent currency depreciation or capital flight. Therefore, the correct choice is C, as capital controls can be implemented on both inflows and outflows. Option A is incorrect as capital controls might not always target only inflows. Option B is incorrect as capital controls could also target outflows. Option D is incorrect as controls on both inflows and outflows may not always be necessary or effective.

Capital Controls