In Order to Level the Playing Field in Trade Between

question 254

Multiple Choice

In order to level the playing field in trade between the U.S.and China,U.S.policymakers have called upon China's government to allow the Yuan China's currency) to float freely,as other world currencies.Through government regulation,China maintains an undervalued currency,which results in:

• A)More buying power for Chinese consumers who want to purchase U.S.goods and goods from other countries.
• B)Maintaining robust Chinese exports and a favorable balance of trade for China.
• C)Developing better relations with industrialized countries who want to increase the value of their exports.
• D)Stability and strength of the Chinese Yuan against the U.S.dollar and the euro.

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Definitions:

Semi-Annual

Occurring twice a year, or every six months.

Quoted

Refers to the current price of a security, commodity, or index as provided by a market or exchange.

Callable Bond

A type of bond that the issuer has the right to repay before its maturity date, at a predetermined call price.

Sinking Fund

A reserve fund established by a company to repay debt or replace a major asset in the future.