One of the physical measures that can be used to reduce the volume of imports is the
A. reduction of personnel income tax B. removal of imports duties C. use of foreign exchange control D. liberalization of credit for importers
Correct Answer: C
Explanation
Foreign exchange control is the procedure by which a government intervenes in the foreign exchangemarket, banning or restricting sales and purchases of local currencies by non-residents as well as sales and purchases of foreign currencies by residents. when there is no foreign exchange to engage in international trade, imports will fall
