Suppose South Korea limits the amount of deposits made in South Korea that can be used to make loans in other countries.This would be in support of which reason for regulating international banks?

Question

Quizplus · Accepted Answer

Limiting the amount of deposits that can be used for loans in other countries can help restrict the outflow of scarce capital from South Korea. This measure can be taken to prevent the depletion of domestic financial resources and maintain the availability of funds for domestic investment and economic growth. This regulation is a type of foreign exchange control that aims to manage the flow of capital across countries.

Suppose South Korea Limits the Amount of Deposits Made in South