For Many Years, China Tightly Managed Its Currency Through Intervention

question 31

Multiple Choice

For many years, China tightly managed its currency through intervention and capital controls, effectively pegging the yuan to the U.S. dollar (a rate of about 8 yuan per dollar) . Which of the exchange rate regimes discussed in the textbook did China have at that time?

• A)Fixed exchange rate
• B)Flexible exchange rate
• C)Partially-flexible exchange rate
• D)Purchasing-power-parity exchange rate

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