If there is a substantial amount of capital leaving a country, what is a country most likely to implement to control the situation?
A) exchange controls
B) local-content laws
C) import restrictions
D) tax controls
E) price controls

Question

Quizplus · Accepted Answer

Exchange controls are measures a country can take to regulate and restrict the amount of foreign currency or local currency that is allowed to be traded or moved across borders. These controls can help manage or prevent the outflow of capital from a country by limiting the ability to convert and transfer money internationally.

If There Is a Substantial Amount of Capital Leaving a Country