Question
Tobin tax is a tax on :
The correct answer is
transactions in the foreign exchange market
Tobin Tax Focus
The Tobin tax is a specific type of financial transaction tax.
It is designed to be applied directly to transactions in the foreign exchange market, also known as the currency market.
Purpose of Tobin Tax
The main objectives behind implementing a Tobin tax include:
- Reducing excessive short-term speculation in currency trading.
- Stabilizing exchange rates by discouraging rapid capital flows.
- Generating revenue that could potentially fund global public goods or development projects.
The tax targets the buying and selling of different currencies.
Was this answer helpful?
Important Questions from International Trade
The Net Barter terms of trade refer to:
A sudden shift from import tariffs to free trade may induce short‐term unemployment in:
The theory which explains the effect of devaluation on balance of trade is known as:
Which one of the following is not the disadvantage of international licensing?
Which one of the following factor does not influence the flow of FDI under Demand factors?
Need Expert Advice?
