(Consider This) Which of the Following Statements Is Most Accurate

question 56

Multiple Choice

(Consider This) Which of the following statements is most accurate about China's pegging of its currency against the U.S. dollar in the 2000s?

• A) China has consistently kept the yuan price of a dollar lower than what the free market equilibrium exchange rate would be.
• B) China has consistently kept the yuan price of a dollar higher than what the free market equilibrium exchange rate would be.
• C) China has regularly adjusted the peg so as to sometimes set the yuan price of a dollar too high and other times set it too low.
• D) China has seen a rapid decline in its reserves of dollars.

---

Definitions:

Post-Closing Trial Balance

A list of all company accounts that remain after closing entries have been made, used to verify the equality of debits and credits.

Net Income

Refers to the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Owner, Capital

An account on a company's balance sheet representing the owner's invested equity or interest in the business.

Liability Insurance Policy

Insurance coverage that protects against claims arising from injuries or damages to other people or property for which the insured is liable.