Capital controls are most often aimed at slowing or eliminating movements of

Question

Quizplus · Accepted Answer

Capital controls are measures taken by the government to regulate or restrict the flow of capital into or out of a country. Such controls are imposed to achieve various objectives such as stabilizing the exchange rate, curbing inflation, or protecting the domestic economy. Among the types of capital flows, foreign portfolio investment is the most common target of capital controls, as it is considered more volatile and speculative than foreign direct investment or reserve assets. Therefore, the best choice is C, foreign portfolio investment.

Capital Controls Are Most Often Aimed at Slowing or Eliminating