Question

A country's currency is said to be _____ when the country's government allows both residents and nonresidents to purchase unlimited amounts of a foreign currency with it.

A) externally convertible
B) nonconvertible
C) internally convertible
D) freely convertible

Answer 1

D) freely convertible

Step-by-step explanation:

Since in the question it is mentioned that the country government permits to both residents and non-residents for acquiring the non-limited values of the foreign currency so this represents the freely convertible.

As in the case of freely convertible the currency should be traded without having any kind of limitations that are imposed by the monetary authorties

Hence, the correct option is D.