A large number of individuals and companies exchanging domestic currencies for US dollars in order to exit their home country is referred to as capital flight.

Question

Quizplus · Accepted Answer

This is true. Capital flight is the movement of assets out of a country, usually as a result of political or economic instability or uncertainty. This can include individuals and companies exchanging their domestic currency for US dollars or other stable currencies in order to protect their assets and exit their home country. This is the definition of capital flight.

A Large Number of Individuals and Companies Exchanging Domestic Currencies