During the 1990s, the country of Chile required foreigners wishing to invest in the country to make a one-year, zero-interest deposit in the Chilean central bank equal to at least 20 percent of the investment.This is an example of:
A) A capital outflow control
B) A capital inflow control
C) An exchange rate mechanism
D) A currency board
Correct Answer:
Verified
Q31: Most economists view capital controls:
A)Unfavorably
B)Unfavorably, emphasizing their
Q32: If the Fed desired to fix the
Q33: Which of the following would be an
Q34: If the Fed decides to maintain a
Q35: If the Fed decides to maintain a
Q37: Reserves in the banking system will increase
Q38: If the Fed decides to control the
Q39: A country that frequently uses capital controls:
A)Increases
Q40: Adding international reserves for a central bank:
A)Increases
Q41: Which of the following statements is incorrect?
A)A
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