A country's currency is said to be _____________ when the country's government allows both residents and non-residents to purchase unlimited amounts of foreign currency with it.

Question

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Freely convertible currency refers to a currency that can be easily exchanged or converted into another currency without any restrictions. This means that the country's government allows both residents and non-residents to purchase unlimited amounts of foreign currency with it. The opposite of a freely convertible currency is a nonconvertible currency, where the government either prohibits or severely restricts the conversion of the currency into another currency.

A Country's Currency Is Said to Be _____________ When the Country's