Assume That the Chinese Government Allowed the Yuan to Float

question 62

Multiple Choice

Assume that the Chinese government allowed the yuan to float relative to the U.S. dollar. Appreciation in the yuan could have an adverse affect on sales of Chinese goods to the U.S. This possible impact on Chinese exports is referred to as:

• A) translation exposure.
• B) transaction exposure.
• C) economic exposure.
• D) accounting exposure.

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Redeem Dollars

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Gold

A precious yellow metallic element, highly valued for use in jewelry, investment, and industrial applications.

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The standard monetary unit of India, also used in a few other countries.