Although the Pegged Exchange Rate Between the Yuan and the U.S.dollar

question 68

Multiple Choice

Although the pegged exchange rate between the yuan and the U.S.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.
• E)reduce the number of US dollars available to Chinese savers.

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Definitions:

Mole

A unit in chemistry used to express amounts of a chemical substance, based on the number of atoms or molecules.

Molecular Weight

A measure of the mass of a molecule, calculated as the sum of the atomic masses of all atoms constituting the molecule.

Grams

A metric unit of mass equal to one thousandth of a kilogram.

Mass

A measure of the amount of matter in an object, often quantified in units like kilograms or grams.