China Holds a Massive Amount of Foreign Exchange Reserves

question 1

Multiple Choice

China holds a massive amount of foreign exchange reserves.As of 1010 they held nearly $2,500 billion.This huge foreign exchange reserve should allow China to:

• A)Manage the value of the Chinese yuan to maintain competitiveness in world markets.
• B)Maintain a relatively stable managed fixed exchange rate for the yuan for years to come.
• C)Remain a very important player in world trade for at least the next several years.
• D)All of the above.

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Definitions:

Method Adjustment

A procedure in psychological experiments where conditions or methods are modified to improve the validity and reliability of the results.

Psychophysics

A branch of psychology dealing with the relationship between physical stimuli and their subjective correlates, or perceptions.

Physical Energies

Physical energies refer to the various forms of kinetic and potential energy associated with the motion, position, or structure of physical objects.

Difference Threshold

The minimum difference in stimulation that a person can detect 50% of the time, also known as the "just noticeable difference."