Although the Pegged Exchange Rate Between the Yuan and the Dollar

question 203

Multiple Choice

Although the pegged exchange rate between the yuan and the dollar has undervalued the yuan,China has been reluctant to abandon the peg for fear that abandoning the peg would

• A)increase exports and increase the current account deficit.
• B)reduce capital inflows.
• C)reduce exports and reduce economic growth.
• D)increase Chinese holdings of dollars.

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Definitions:

Germination

The process by which a plant grows from a seed or similar structure, marking the beginning of its life cycle.

Coleoptile

Of monocots, a rigid sheath that protects the plumule (embryonic shoot) as it grows up to the soil surface.

Radicle

The first part of a seedling to emerge during the germination process, which develops into the primary root.

Phototropism

Directional response to light.