The Asian and Argentinean crises have led China to:
A) rely on inflation taxes.
B) allow its currency to float.
C) decrease its domestic investment.
D) maintain strict capital controls.
E) keep interest rates close to zero.

Question

Quizplus · Accepted Answer

The Asian and Argentinean crises led China to maintain strict capital controls in order to prevent a similar situation from happening in its own economy. These controls limit the flow of foreign investment and capital into and out of the country, helping to maintain stability and control over its financial system.

The Asian and Argentinean Crises Have Led China To