Which Argument Is True About Chinese Renminbi

question 18

Multiple Choice

Which argument is true about Chinese Renminbi?

• A) is preferred currency for international trade accounting for over 50% of all foreign trade settlements
• B) is traded under fixed regime on China Onshore Market, but floating on its Hong Kong Offshore Market
• C) is traded at the moment under managed float within +/- 1% against the US dollar parity rate set by People's Bank of China
• D) has been constantly depreciating against the US dollar over the last 20 years

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Definitions:

Adverse Selection

A situation in which one party in a transaction has more or better information than the other, often leading to an imbalance in the transaction.

Lifetime Annuity Providers

Companies that offer financial products providing a guaranteed income stream for the lifetime of the policyholder, typically used for retirement planning.

Health Insurance Providers

Health Insurance Providers are companies or organizations that offer plans aimed at covering the costs of medical care for insured individuals or entities.

Return On Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the return of an investment by its cost.