Trusted by millions of Kenyans
LoginRegister
Study resources on Kenyaplex

Get ready-made curriculum aligned revision materials

Exam papers, notes, holiday assignments and topical questions – all aligned to the Kenyan curriculum.

Browse exam papers
Or go directly to:
Class notes Holiday assignments Topical questions Other resources

Outline the objectives of exchange control

Outline the objectives of exchange control

Answers

Simon
• To maintain, stabilize and control the exchange rate
• To protect the domestic industries from the foreign competition.
• Exchange control improves the balance of payment.
• To check the flow of capital when in a country symptoms of devaluation appear, the foreigners who have invested in that country begin to withdraw their capital. The exchange control system is adopted to stop capital-drain from the country.
• Economy in the use of foreign exchange. Development of any country mostly depends on the deposits of foreign exchange available with any country. To accumulate foreign exchange deposits, only those commodities should be imported which are very vital. To put a check on the import of unnecessary goods, foreign exchange control is considered the most effective instrument.

skilled writter answered the question on May 1, 2018 at 16:25

Answer Attachments

Next: Explain five factors leading to fluctuations of foreign exchange.

Previous: Explain four methods for exchange control applied by the government.

View more Business Studies Questions and Answers  |  Return to Questions Index

Exams With Marking Schemes

Related Questions