A black market exists when ________.
A)a country closely monitors and adjusts the foreign-exchange rate
B)people pay more for hard currency than the official rate
C)a country is running a budget surplus
D)a country is experiencing a recession

Question

Quizplus · Accepted Answer

A black market exists when people are paying more for a good or service than the official rate set by the government or other regulating entity. This is often due to shortages or restrictions in supply, resulting in a market where goods or services are sold illegally. A and C do not relate to the existence of a black market, and while a recession may contribute to the conditions that increase the likelihood of a black market, it is not sufficient on its own to create one.

A Black Market Exists When ________