China Has Used a Fixed Yuan Exchange Rate and a Crawling

question 96

Multiple Choice

China has used a fixed yuan exchange rate and a crawling peg exchange rate. In both cases, China pegs its currency to the

• A)U.S. dollar.
• B)Japanese yen.
• C)euro.
• D)Mexican peso.
• E)Russian ruble.

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Definitions:

After-tax Cost

The actual cost of an investment or loan after accounting for the impact of taxes on the return.

Discount Rate

The interest rate used in discounted cash flow analysis to determine the present value of future cash flows.

Operating Lease

A rental agreement allowing a company to use an asset without owning it, typically involving shorter terms and cancellable by the lessee.

Short-term Lease

A leasing agreement that typically lasts for a relatively short period of time, usually less than a year.