If there is a substantial amount of capital leaving the country,the country is likely to implement which of the following to control the situation?

Question

Quizplus · Accepted Answer

Exchange controls are typically implemented by a country to limit the amount of capital leaving the country through restrictions on currency conversion or limits on the amount of money that can be taken out of the country. This is a common tool used by countries to control capital flight during times of economic instability. Local-content laws, import restrictions, tax controls, and price controls are not necessarily related to controlling the outflow of capital from a country.

If There Is a Substantial Amount of Capital Leaving the Country,the