In 2005,China Increased the Price of Its Currency While Continuing

question 55

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 depreciation.
• C)a peg.
• D)a devaluation.
• E) a revaluation.

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Definitions:

Cash Value

The value of the investment portion of a whole life insurance policy.

S&P 500

A stock market index that measures the stock performance of 500 of the largest companies listed on stock exchanges in the United States.

Pre-Tax Retirement Account

A savings account designed for retirement that allows individuals to contribute pre-tax income, with taxes deferred until withdrawal.

Compounded Monthly

The process of adding interest to the principal sum of a loan or deposit, where the interest is calculated on a monthly basis.