Explain why a country that wishes to have an independent monetary policy as well as a fixed exchange rate would have to institute controls on capital flows into and out of the country in order to accomplish these two objectives ...

This is one of the cases in the phenomenon known as the impossible trinity If the country wishes to ...

Explain why a country that wishes to have an independent monetary policy as well as a fixed

Question:

Explain why a country that wishes to have an independent monetary policy as well as a fixed would have to institute controls on capital flows into and out of the country in order to accomplish these two objectives.
Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...