Question

If there is a substantial amount of capital leaving a country, what is a country most likely to implement to control the situation?

A. import restrictionsB. local-content lawsC. exchange controlsD. price controlsE. tax controls

Answer 1

Answer: Exchange controls

Step-by-step explanation:

If a country notices a rise in the amount of capital leaving the country, the central bank of that country can place some exchange controls to limit the rate at which money leaves the country.

Exchange controls are limitations set by countries to limit the amount of currencies that enters or leave their economies, it is a very common practice of developing economies.