A(n) ________ serves to limit the amount of foreign exchange and the exchange rate against other currencies.
A) exchange premium
B) free trade zone
C) quota
D) exchange control
E) tariff trade barrier

Question

Quizplus · Accepted Answer

Exchange control refers to the government's regulation of the exchange rate and the amount of foreign currency that can be bought or sold in the country. This is done to limit the outflow of currency and maintain the stability of the domestic currency. Quota refers to a specific quantity limit on the import or export of a particular product, and while it can affect foreign exchange, it is not the primary purpose of a quota. The other options, including trade barriers and free trade zones, do not directly relate to the restriction of foreign exchange.

A(n) ________ Serves to Limit the Amount of Foreign Exchange