The Exchange Rate Policy of a "Crawling Peg" Adopted by the Chinese

question 51

Multiple Choice

The exchange rate policy of a "crawling peg" adopted by the Chinese government in 2005 means that the government

• A)allowed small and controlled changes in the exchange-rate value over time.
• B)pegged the Yuan to the U.S.dollar at the equilibrium exchange rate.
• C)held a balanced portfolio of assets including a variety of foreign currencies.
• D)caved in to pressures from foreign governments.

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Definitions:

Maslow's Hierarchy

A theory of psychological motivation based on a hierarchy of needs, from basic survival needs to self-actualization.

Lower-Order Physiological Needs

Basic human necessities such as food, water, shelter, and sleep that are essential for survival.

Adequate Compensation

Refers to fair and sufficient payment or remuneration provided to employees for their work, balancing their contributions with their earnings.

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow, structured as a hierarchical pyramid with physiological needs at the base, ascending to self-actualization at the top.