Exchange controls in Peru _________.
A) reduce quotas
B) are illegal
C) reduce tariffs
D) are designed to float the exchange rate
E) will ease the pressure on Peru's foreign exchange reserves if its exchange rate is fixed

Question

Quizplus · Accepted Answer

Exchange controls in Peru, when the exchange rate is fixed, are measures aimed at managing the balance of payments and protecting foreign exchange reserves by controlling the flow of foreign currency into and out of the country. This can help ease pressure on Peru's foreign exchange reserves by limiting demand for foreign currency and stabilizing the exchange rate.

Exchange Controls in Peru _________