To Prevent Inflation Caused by Holding So Much Foreign Currency,China

question 10

Multiple Choice

To prevent inflation caused by holding so much foreign currency,China must

• A)Fix its exchange rate lower.
• B)Allow the dollar to float.
• C)Allow the yuan to float with supply and demand and cause it to depreciate.
• D)Allow a floating yuan to cause it to appreciate.

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Definitions:

Cognitive Processes

Mental activities involved in acquiring, processing, and storing knowledge, such as perception, memory, problem-solving, and decision-making.

Content Theories

Theories that explain the specific factors motivating individuals at work, focusing on the content of what motivates individuals.

Abraham Maslow

An American psychologist best known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs.

Clayton Alderfer

An American psychologist known for developing the ERG theory, which categorizes human needs into existence, relatedness, and growth categories.