China Fixes Its Exchange Rate (Yuan Per Units of Foreign

question 77

Multiple Choice

China fixes its exchange rate (yuan per units of foreign currency) at a rate above its free-market equilibrium level,which means that China is keeping the external value of the yuan

• A)artificially high.
• B)at its free-market price.
• C)at the rate established by its trading partners.
• D)artificially low.
• E)in line with the world market for foreign currency.

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Definitions:

Deed of Trust

A legal document used in some states that involves three parties—the borrower, the lender, and the trustee—and it serves as a lien on real property.

Default

The failure to fulfill a legal obligation, especially the failure to pay back a loan according to the agreed-upon terms.

Beneficiary

An individual or entity entitled to receive benefits or assets under a legal instrument, such as a will, trust, or insurance policy.

Land Contract

A conditional agreement for the sale and purchase of real estate in which the legal title to the property is retained by the seller until the purchaser has fulfilled the agreement, usually by completing the payment of the agreed-on purchase price.