Capital control is described by all of the following, EXCEPT:
A) restricting merchandise trade.
B) restricting the trade in foreign exchange.
C) channeling the currency trade through the government.
D) restricting cross-border financial transactions.

Question

Quizplus · Accepted Answer

Capital control refers to the measures imposed by a government to regulate the flow of capital in and out of its currency or country. This includes restricting the trade in foreign exchange, channeling the currency trade through the government, and restricting cross-border financial transactions. However, it does not necessarily involve restricting merchandise trade.

Capital Control Is Described by All of the Following, EXCEPT