If a currency is convertible on the current account, which of the following transactions would not be permissible?
A)the purchase of foreign currency in order to import goods or services
B)the sale of foreign currency resulting from the export of goods or services
C)the purchase of foreign currency in order to purchase assets abroad
D)the sale of foreign currency resulting from the sale of assets abroad

Question

Quizplus · Accepted Answer

A currency convertible on the current account allows for transactions related to trade in goods and services, but not necessarily for capital account transactions like purchasing assets abroad.

If a Currency Is Convertible on the Current Account, Which