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Case Interview Prep

Category - Economics

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After the Second World War, many countries have instituted measures that would prevent the entry and exit of large capital into the country. What are these measures referred to?
  1. adjustment programs
  2. foreign investment limits
  3. capital subsidies
  4. capital controls
Explanation
Answer: D - These programs are referred to as capital controls.

Key Takeaway: Capital controls were measures designed to prevent the entry or exit of large capital into a country that would threaten its economic viability. Among the measures are transaction taxes and limits on the size of some international transactions.
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