Taxes or rules that constrain foreign exchange transactions are called

Question

Quizplus · Accepted Answer

Taxes or rules that constrain foreign exchange transactions are called capital controls. These controls are used by governments to restrict the outflow or inflow of capital from their economy. They can take the form of taxes, limits on the amount of currency that can be exchanged, or restrictions on the transfer of funds to other countries. Capital controls are used to manage the stability of a country's currency and to prevent crises from occurring.

Taxes or Rules That Constrain Foreign Exchange Transactions Are Called