Which of the following is a common type of capital restriction?
Explanation
Restrictions limit the flow of capital into or out of a country.
Other questions
In the context of foreign exchange quotes, if a rate is expressed as 1.25 USD/EUR, which currency is the base currency?
Which exchange rate is defined as the exchange rate for immediate delivery?
What is the standard transaction cycle for the forex spot market?
Which formula correctly represents the Real Exchange Rate (d/f)?
If the Nominal Exchange rate is 1.5 Domestic/Foreign, foreign CPI is 110, and domestic CPI is 100, what is the Real Exchange Rate?
If the exchange rate changes from 1.20 USD/EUR to 1.32 USD/EUR, what is the percentage change in the value of the EUR (Base)?
If the exchange rate moves from 50 ZAR/USD to 55 ZAR/USD, what has happened to the ZAR?
Calculate the appreciation of the USD if the rate changes from 52 ZAR/USD to 57 ZAR/USD.
Which of the following is considered a 'Sell Side' participant in the FX market?
Hedge funds and algorithmic traders are classified under which type of FX market participant?
What defines a 'Real Money Account' in the FX market?
Which entity is considered a Public Sector participant in the FX market?
A country that uses the currency of another country and does not have its own monetary policy is operating under which regime?
In a Monetary Union, which characteristic applies?
Which exchange rate regime involves an explicit legislative commitment to exchange domestic currency for a specified foreign currency at a fixed rate?
Under a 'Conventional fixed peg', the country pegs its currency within margins of what percentage versus another currency?
How does a 'Peg with horizontal bands' differ from a 'Conventional fixed peg'?
What is the primary characteristic of a 'Crawling peg' regime?
In a 'Management within crawling bands' regime, what happens to the width of the bands over time?
Which regime allows the monetary authority to influence the exchange rate in response to indicators like the Balance of Payments, without a specific target path?
In an 'Independently floating' regime, when is intervention used?
Which of the following is an argument *for* capital restrictions?
What is the 'Infant industry' argument for capital restrictions?
The Absorption approach to the balance of trade focuses on which relationship?
According to the absorption approach, what causes a trade deficit?
Which currency quote convention is used in the text?
If the Price currency decreases in a quoted exchange rate (e.g., USD/EUR goes from 1.20 to 1.10), what has happened to the Base currency?
Which of the following is defined as 'Investment firms that use derivatives/leverages'?
What does the text imply about the relationship between high inflation and exchange rates in a crawling peg?
If a government restricts the repatriation of earnings of foreign entities, this is an example of:
Who are the 'Originators of forward foreign exchange contracts' according to the text?
A 'Point in Percentage' (PIP) is typically what fraction?
If the spot rate is 66.1215 and it increases by 3 PIPS, what is the new rate?
Which of the following represents a 'Buy Side' participant?
If Nominal Rate is 1.0, Domestic CPI is 100, and Foreign CPI is 120, what is the Real Exchange Rate?
In the notation USD/EUR, which currency is the Price currency?
Which argument against capital restrictions suggests that they prevent the capture of efficiency gains?
If a country has a National Income of 500 and Total Expenditure of 550, what is its Balance of Trade status?
Which type of bank is a participant in the Sell Side of the FX market?
Under 'Formal dollarization', can a country conduct its own independent monetary policy?
What is the key difference between a Currency Board and a Fixed Peg?
Which regime is described as 'Market determined. Intervention is used only to slow the rate of change'?
If a country has a 'Peg with horizontal bands', the currency moves within a margin that is:
In the context of Market Participants, what does 'CTA' stand for?
Which sector includes 'Sovereign Wealth Funds'?
A 'Managed floating' exchange rate is influenced by the monetary authority based on:
When a country uses taxes on income earned on foreign investments, this is classified as:
Which participant type includes 'Corporations'?
If nominal GDP (Income) is 1000 and the Trade Deficit is 100, what is the Total Expenditure?