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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Definitions:

New Technology

Innovative or improved tools, systems, or procedures that enhance efficiency, productivity, or quality in various fields.

Fundamental Questions

Basic economic questions that societies must answer regarding the allocation of resources and the distribution of goods and services.

System Promote Progress

Describes a mechanism or set of policies designed to encourage advancement, innovation, and improvements in various fields such as technology, economy, and social welfare.

Minimize The Cost

A strategy aimed at finding the most effective way to use resources to reduce expenses to the lowest possible level.