In Order to Maintain a Pegged Exchange Rate in China

question 120

Multiple Choice

In order to maintain a pegged exchange rate in China,

• A) the Chinese government must prevent Chinese citizens from trading goods or services with other countries.
• B) the Chinese government must prevent Chinese citizens from purchasing assets denominated in foreign currencies.
• C) the Chinese government must adjust the supply of the yuan in world markets.
• D) at least one foreign country must also maintain a pegged exchange rate.
• E) no other country with which China shares a geographical border can maintain a pegged exchange rate.

---

Definitions:

Experiments

Formal tests of specific variables and effects, performed in a setting where all aspects of the situation can be controlled.

Focus Group

A research method involving a small, diverse group of people whose reactions are studied especially in response to new products or policies.

One-on-one Interviews

A qualitative research method involving a structured or semi-structured conversation between a researcher and a participant to gather in-depth information.

Scientific Method

A method of procedure consisting of systematic observation, measurement, experiment, and the formulation, testing, and modification of hypotheses.