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

question 77

Multiple Choice

Although the pegged exchange rate between the yuan and the U.S.dollar has ________ the yuan, China has been reluctant to abandon the peg for fear that doing so would ________.

• A)undervalued; reduce exports
• B)undervalued; reduce imports
• C)overvalued; increase imports
• D)overvalued; reduce exports
• E)depreciated; reduce exports

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Definitions:

Accounting Policy

Individual tenets, underpinnings, traditions, legislations, and tactics utilized by an establishment in crafting and showcasing its financial accounts.

Relevant Information

Data or facts that are applicable to a situation or problem, and can influence decision-making processes.

Depreciable Asset

A long-term asset for which the decline in value over time due to use and wear can be allocated over its useful life in a systematic manner.