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    Question

    A country may allow foreign direct investment and

    portfolio investment but restrict the repatriation of capital or the issuance of foreign currency-denominated debt. This is an example of __________.
    A Partial Capital Account Convertibility Correct Answer Incorrect Answer
    B Full Capital Account Convertibility Correct Answer Incorrect Answer
    C Partial Current Account Convertibility Correct Answer Incorrect Answer
    D Full Current Account Convertibility Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Partial capital account convertibility: In this type of capital account convertibility, certain categories of transactions are allowed, while others are restricted. For example, a country may allow foreign direct investment and portfolio investment but restrict the repatriation of capital or the issuance of foreign currency-denominated debt.

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