Background: Often, foreign exchange controls can result in the creation of black markets to exchange the weaker currency for stronger currencies. This leads to a situation where the exchange rate for the foreign currency is much higher than the rate set by the government, and therefore creates a shadow currency exchange market. As such, it is unclear whether governments have the ability to enact effective exchange controls.[1]

Situation: In the beginning of this century there was scandal in the financial market regarding black market trading. A trader named Trader A was working for Bank A. He noticed country M has pegged its currency to a fixed price while country N did not do that. He opted to trade country M currency. Across the aisle his colleague trader B was working for bank B. He traded country N's currency.

Question: Which country's currencey would most probably be traded in the black market?
Answer: country M

Situation: In the beginning of this century there was scandal in the financial market regarding black market trading. A trader named Trader A was working for Bank A. He noticed country M has pegged its currency to a fixed price while country N did not do that. He opted to trade country M currency. Across the aisle his colleague trader B was working for bank B. He traded country N's currency.

Question: Which country's currencey would not most probably be traded in the black market?
Answer: country N

Situation: In the beginning of this century there was scandal in the financial market regarding black market trading. A trader named Trader A was working for Bank A. He noticed country M has pegged its currency to a fixed price while country N did not do that. He opted to trade country M currency. Across the aisle his colleague trader B was working for bank B. He traded country N's currency.

Question: Would country M's currenccy be traded or not traded in the balck market?
Answer: traded

Situation: In the beginning of this century there was scandal in the financial market regarding black market trading. A trader named Trader A was working for Bank A. He noticed country M has pegged its currency to a fixed price while country N did not do that. He opted to trade country M currency. Across the aisle his colleague trader B was working for bank B. He traded country N's currency.

Question: Would country N's currenccy be traded or not traded in the balck market?
Answer: not traded

Situation: In the beginning of this century there was scandal in the financial market regarding black market trading. A trader named Trader A was working for Bank A. He noticed country M has pegged its currency to a fixed price while country N did not do that. He opted to trade country M currency. Across the aisle his colleague trader B was working for bank B. He traded country N's currency.

Question: Which trader would most likely be engaged in black market trading, trader A or trader B?
Answer: trader A

Situation: In the beginning of this century there was scandal in the financial market regarding black market trading. A trader named Trader A was working for Bank A. He noticed country M has pegged its currency to a fixed price while country N did not do that. He opted to trade country M currency. Across the aisle his colleague trader B was working for bank B. He traded country N's currency.

Question: Which trader would not most likely be engaged in black market trading, trader A or trader B?
Answer: trader B

Situation: In the beginning of this century there was scandal in the financial market regarding black market trading. A trader named Trader A was working for Bank A. He noticed country M has pegged its currency to a fixed price while country N did not do that. He opted to trade country M currency. Across the aisle his colleague trader B was working for bank B. He traded country N's currency.

Question: Would trader A be engaged or not be engaged in black market trading?
Answer: be engaged

Situation: In the beginning of this century there was scandal in the financial market regarding black market trading. A trader named Trader A was working for Bank A. He noticed country M has pegged its currency to a fixed price while country N did not do that. He opted to trade country M currency. Across the aisle his colleague trader B was working for bank B. He traded country N's currency.

Question: Would trader B be engaged or not be engaged in black market trading?
Answer: not be engaged

Situation: In the beginning of this century there was scandal in the financial market regarding black market trading. A trader named Trader A was working for Bank A. He noticed country M has pegged its currency to a fixed price while country N did not do that. He opted to trade country M currency. Across the aisle his colleague trader B was working for bank B. He traded country N's currency.

Question: Which trader would most likely have caused the scandal?
Answer: Trader A

Situation: In the beginning of this century there was scandal in the financial market regarding black market trading. A trader named Trader A was working for Bank A. He noticed country M has pegged its currency to a fixed price while country N did not do that. He opted to trade country M currency. Across the aisle his colleague trader B was working for bank B. He traded country N's currency.

Question: Which trader would most likely not have caused the scandal?
Answer: trader B

Situation: On March 2015 Japans economy soared. There was a likelihood that the Japanese yen would rise in value. In the wake of this event, Japanese Government adjusted 
the price of Japanese Currency Yen in accordance with the going market price. On the other hand, at he same time, UK was having economic downturn. There was a likelihood that the UK Currency Pound Sterling would go down. Fearing public backlash, UK Government kept the price of the Pound Sterling at the same level.

Question: Which currency would most likely be exchanged in the black market, Pound Sterling or Yen?
Answer: Pound Sterling

Situation: On March 2015 Japans economy soared. There was a likelihood that the Japanese yen would rise in value. In the wake of this event, Japanese Government adjusted 
the price of Japanese Currency Yen in accordance with the going market price. On the other hand, at he same time, UK was having economic downturn. There was a likelihood that the UK Currency Pound Sterling would go down. Fearing public backlash, UK Government kept the price of the Pound Sterling at the same level.

Question: Which currency would most likely not be exchanged in the black market, Pound Sterling or Yen?
Answer: Yen

Situation: On March 2015 Japans economy soared. There was a likelihood that the Japanese yen would rise in value. In the wake of this event, Japanese Government adjusted 
the price of Japanese Currency Yen in accordance with the going market price. On the other hand, at he same time, UK was having economic downturn. There was a likelihood that the UK Currency Pound Sterling would go down. Fearing public backlash, UK Government kept the price of the Pound Sterling at the same level.

Question: Will Pound Sterling be exchanged or not be exchanged in the black market?
Answer: be exchanged

Situation: On March 2015 Japans economy soared. There was a likelihood that the Japanese yen would rise in value. In the wake of this event, Japanese Government adjusted 
the price of Japanese Currency Yen in accordance with the going market price. On the other hand, at he same time, UK was having economic downturn. There was a likelihood that the UK Currency Pound Sterling would go down. Fearing public backlash, UK Government kept the price of the Pound Sterling at the same level.

Question: Will Japanese Yen be exchanged or not be exchanged in the black market?
Answer: not be exchanged

Situation: On March 2015 Japans economy soared. There was a likelihood that the Japanese yen would rise in value. In the wake of this event, Japanese Government adjusted 
the price of Japanese Currency Yen in accordance with the going market price. On the other hand, at he same time, UK was having economic downturn. There was a likelihood that the UK Currency Pound Sterling would go down. Fearing public backlash, UK Government kept the price of the Pound Sterling at the same level.

Question: Which Government took the right step to combat their currency being traded in the black market?
Answer: Japanese Government

Situation: On March 2015 Japans economy soared. There was a likelihood that the Japanese yen would rise in value. In the wake of this event, Japanese Government adjusted 
the price of Japanese Currency Yen in accordance with the going market price. On the other hand, at he same time, UK was having economic downturn. There was a likelihood that the UK Currency Pound Sterling would go down. Fearing public backlash, UK Government kept the price of the Pound Sterling at the same level.

Question: Which Government took the wrong step to combat their currency being traded in the black market?
Answer: UK Government

Situation: On March 2015 Japans economy soared. There was a likelihood that the Japanese yen would rise in value. In the wake of this event, Japanese Government adjusted 
the price of Japanese Currency Yen in accordance with the going market price. On the other hand, at he same time, UK was having economic downturn. There was a likelihood that the UK Currency Pound Sterling would go down. Fearing public backlash, UK Government kept the price of the Pound Sterling at the same level.

Question: Would Japanese Government fare better or worse in combating their currency being traded in the black market?
Answer: fare better

Situation: On March 2015 Japans economy soared. There was a likelihood that the Japanese yen would rise in value. In the wake of this event, Japanese Government adjusted 
the price of Japanese Currency Yen in accordance with the going market price. On the other hand, at he same time, UK was having economic downturn. There was a likelihood that the UK Currency Pound Sterling would go down. Fearing public backlash, UK Government kept the price of the Pound Sterling at the same level.

Question: Would UK Government fare better or worse in combating their currency being traded in the black market?
Answer: worse

Situation: On March 2015 Japans economy soared. There was a likelihood that the Japanese yen would rise in value. In the wake of this event, Japanese Government adjusted 
the price of Japanese Currency Yen in accordance with the going market price. On the other hand, at he same time, UK was having economic downturn. There was a likelihood that the UK Currency Pound Sterling would go down. Fearing public backlash, UK Government kept the price of the Pound Sterling at the same level.

Question: Which country would most likely see a formation of shadow currency exchange market, Japan or UK?
Answer: UK

Situation: On March 2015 Japans economy soared. There was a likelihood that the Japanese yen would rise in value. In the wake of this event, Japanese Government adjusted 
the price of Japanese Currency Yen in accordance with the going market price. On the other hand, at he same time, UK was having economic downturn. There was a likelihood that the UK Currency Pound Sterling would go down. Fearing public backlash, UK Government kept the price of the Pound Sterling at the same level.

Question: Which country would most likely not see a formation of shadow currency exchange market, Japan or UK?
Answer: Japan