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: Pakistan tried to control the foreign exchange market and India didn't. By creating the foreign exchange control department, Pakistan tried to stop the devaluation of their currency. India chose to not interfere and let the exchange market regulate itself.

Question: Which country contributed more to the devaluation of their currency?
Answer: Pakistan

Situation: Pakistan tried to control the foreign exchange market and India didn't. By creating the foreign exchange control department, Pakistan tried to stop the devaluation of their currency. India chose to not interfere and let the exchange market regulate itself.

Question: Which country contributed less to the devaluation of their currency?
Answer: India

Situation: Pakistan tried to control the foreign exchange market and India didn't. By creating the foreign exchange control department, Pakistan tried to stop the devaluation of their currency. India chose to not interfere and let the exchange market regulate itself.

Question: Which country was less regulated in regards to foreign currency exchange?
Answer: India

Situation: Pakistan tried to control the foreign exchange market and India didn't. By creating the foreign exchange control department, Pakistan tried to stop the devaluation of their currency. India chose to not interfere and let the exchange market regulate itself.

Question: Which country was more regulated in regards to foreign currency exchange?
Answer: Pakistan

Situation: Pakistan tried to control the foreign exchange market and India didn't. By creating the foreign exchange control department, Pakistan tried to stop the devaluation of their currency. India chose to not interfere and let the exchange market regulate itself.

Question: Which country had a higher exchange rate for currencies?
Answer: Pakistan

Situation: Pakistan tried to control the foreign exchange market and India didn't. By creating the foreign exchange control department, Pakistan tried to stop the devaluation of their currency. India chose to not interfere and let the exchange market regulate itself.

Question: Which country had a lower exchange rate for currencies?
Answer: India

Situation: Pakistan tried to control the foreign exchange market and India didn't. By creating the foreign exchange control department, Pakistan tried to stop the devaluation of their currency. India chose to not interfere and let the exchange market regulate itself.

Question: Which country had a larger shadow market as a result of their actions?
Answer: Pakistan

Situation: Pakistan tried to control the foreign exchange market and India didn't. By creating the foreign exchange control department, Pakistan tried to stop the devaluation of their currency. India chose to not interfere and let the exchange market regulate itself.

Question: Which country had a smaller shadow market as a result of their actions?
Answer: India

Situation: Pakistan tried to control the foreign exchange market and India didn't. By creating the foreign exchange control department, Pakistan tried to stop the devaluation of their currency. India chose to not interfere and let the exchange market regulate itself.

Question: Which country had more economic problems because of the foreign exchange rate?
Answer: Pakistan

Situation: Pakistan tried to control the foreign exchange market and India didn't. By creating the foreign exchange control department, Pakistan tried to stop the devaluation of their currency. India chose to not interfere and let the exchange market regulate itself.

Question: Which country had less economic problems because of the foreign exchange rate?
Answer: India

Situation: Booneland changed their foreign exchange controls and Bradland didn't. The foreign currency got more expensive and they had problems with a shadow currency exchange. Bradland people were more cautious and less inclined to take risks, but didn't have those problems.

Question: Which country had a more expensive foreign currency?
Answer: Booneland

Situation: Booneland changed their foreign exchange controls and Bradland didn't. The foreign currency got more expensive and they had problems with a shadow currency exchange. Bradland people were more cautious and less inclined to take risks, but didn't have those problems.

Question: Which country had a less expensive foreign currency?
Answer: Bradland

Situation: Booneland changed their foreign exchange controls and Bradland didn't. The foreign currency got more expensive and they had problems with a shadow currency exchange. Bradland people were more cautious and less inclined to take risks, but didn't have those problems.

Question: Which country had a more shadow market problems?
Answer: Booneland

Situation: Booneland changed their foreign exchange controls and Bradland didn't. The foreign currency got more expensive and they had problems with a shadow currency exchange. Bradland people were more cautious and less inclined to take risks, but didn't have those problems.

Question: Which country had a fewer shadow market problems?
Answer: Bradland

Situation: Booneland changed their foreign exchange controls and Bradland didn't. The foreign currency got more expensive and they had problems with a shadow currency exchange. Bradland people were more cautious and less inclined to take risks, but didn't have those problems.

Question: Which country had people that were more cautious?
Answer: Bradland

Situation: Booneland changed their foreign exchange controls and Bradland didn't. The foreign currency got more expensive and they had problems with a shadow currency exchange. Bradland people were more cautious and less inclined to take risks, but didn't have those problems.

Question: Which country had people that were less cautious?
Answer: Booneland

Situation: Booneland changed their foreign exchange controls and Bradland didn't. The foreign currency got more expensive and they had problems with a shadow currency exchange. Bradland people were more cautious and less inclined to take risks, but didn't have those problems.

Question: Which country had people that were less inclined to take risks?
Answer: Bradland

Situation: Booneland changed their foreign exchange controls and Bradland didn't. The foreign currency got more expensive and they had problems with a shadow currency exchange. Bradland people were more cautious and less inclined to take risks, but didn't have those problems.

Question: Which country had people that were more inclined to take risks?
Answer: Booneland

Situation: Booneland changed their foreign exchange controls and Bradland didn't. The foreign currency got more expensive and they had problems with a shadow currency exchange. Bradland people were more cautious and less inclined to take risks, but didn't have those problems.

Question: Which country had more government interference in the exchange markets?
Answer: Booneland

Situation: Booneland changed their foreign exchange controls and Bradland didn't. The foreign currency got more expensive and they had problems with a shadow currency exchange. Bradland people were more cautious and less inclined to take risks, but didn't have those problems.

Question: Which country had less government interference in the exchange markets?
Answer: Bradland