'Capital controls' are limits on the flow of foreign exchange and financial investment across countries.

Question

Quizplus · Accepted Answer

Capital controls are indeed limits on the flow of foreign exchange and financial investment across countries. They are implemented by governments to regulate the inflow and outflow of capital in order to stabilize their economies or to prevent currency speculation or financial crises. Examples of capital controls include limits on the amount of money that citizens or foreign investors can send or take out of the country, restrictions on foreign currency transactions, and requirements for approval or licensing for certain types of investments.

'Capital Controls' Are Limits on the Flow of Foreign Exchange