If China Wished to Reduce Their Accumulation of Foreign Exchange

question 19

Multiple Choice

If China wished to reduce their accumulation of foreign exchange reserves they could:

• A) allow their currency, the yuan, to float freely in the market place.
• B) reduce their current account surplus by importing more goods than they export.
• C) undertake both of the activities identified in choices A and B.
• D) dig a big hole and bury the reserves.

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