In 2005, China Increased the Price of Its Currency While

question 25

Multiple Choice

In 2005, China increased the price of its currency while continuing to pursue a fixed exchange rate. This change in policy is called:

• A) an appreciation.
• B) a revaluation.
• C) a devaluation.
• D) a depreciation.
• E) a peg.

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Definitions:

Usury Law

Legislation designed to regulate interest rates by setting a maximum rate that can be charged on loans and credit.

Interest Rate

The cost of borrowing money, expressed as a percentage of the amount loaned, which lenders charge borrowers or the rate earned by depositors.

Usury Laws

Legislation that sets maximum interest rates that can be charged on loans.

Ceiling

A maximum limit imposed by a government or regulatory body, particularly regarding prices or wages.