It's No Secret These Days That the People's Bank of China

question 246

Multiple Choice

It's no secret these days that the People's Bank of China is fat with cash from the increasing rate of Chinese exporting.As a smart player on the global stage,which of the following strategic decisions will the People's Bank of China probably do on a daily basis?

• A)Invest its free cash in the securities of other nations whose interest rates remain at a low and acceptable rate,for a long period of time.
• B)Limit its global investment of free cash,and continue to invest in the construction trade in China,to build more factories,while providing its clientele with the highest possible interest rates.
• C)Invest its free cash in the securities of other nations who do not participate in the same type of industries such as soft goods and electronics.
• D)Invest its free cash in the securities of other nations where it can get the highest available interest rate,for the shortest period of time.

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Definitions:

Owner's Drawings

Owner's disbursements from a business in either a sole proprietorship or partnership for personal expenditures.

Salaries and Wages Expense

The total amount spent by a business on its employees' salaries and wages during a specific period.

Equipment

Tangible assets used in operations, such as machinery and office hardware, which are subject to depreciation over their useful lives.

Debit

A financial record that boosts asset or expense ledgers or reduces liability, equity, or income ledgers.