Capital controls:

Question

Capital controls:

Quizplus · Accepted Answer

Capital controls can be implemented on both inflows and outflows, depending on the country's economic and financial situation. Some countries may use capital controls to limit hot money inflows that may lead to currency appreciation and hurt their export competitiveness, while other countries may use capital controls to limit outflows during times of financial stress or to prevent external borrowing from getting out of control. Thus, capital controls can be applied to both inflows and outflows or separately depending on the country's policy goals.

Capital Controls