In Order to Maintain a Pegged Exchange Rate in China

question 120

Multiple Choice

In order to maintain a pegged exchange rate in China,

• A) the Chinese government must prevent Chinese citizens from trading goods or services with other countries.
• B) the Chinese government must prevent Chinese citizens from purchasing assets denominated in foreign currencies.
• C) the Chinese government must adjust the supply of the yuan in world markets.
• D) at least one foreign country must also maintain a pegged exchange rate.
• E) no other country with which China shares a geographical border can maintain a pegged exchange rate.

---

Definitions:

Spanish Crown

The monarchy of Spain, a symbol of the nation's history, power, and governance, especially prominent during the age of exploration and colonialism.

Roman Catholicism

The largest branch of Christianity, led by the Pope, with distinctive doctrines, practices, and organizational structures.

Spanish Dominions

Territories that were under the rule of the Spanish monarchy, encompassing vast areas in the Americas, Asia, Africa, and Europe at various times from the late 15th to the early 19th centuries.

Semantic Encoding

The process of encoding sensory input that has particular meaning or can be applied to a context, rather than merely being remembered as a visual or auditory stimulus.