Suppose the Current Exchange Rate Between the Chinese Yuan and the United

question 481

Multiple Choice

Suppose the current exchange rate between the Chinese yuan and the United States dollar is 7 yuan per dollar. If the Fed sought to drive up the exchange rate to 8 yuan per dollar then it would

• A) buy dollars.
• B) sell dollars.
• C) buy yuan.
• D) sell dollars and buy yuan.

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Definitions:

Employer

An individual or entity that hires and pays for the services of workers.

Employees

Individuals who are hired by a firm or organization to perform specific tasks and duties in exchange for compensation.

Market Pay Policy

A compensation strategy based on the prevailing wage rates within an industry or geographic location for similar jobs, aiming to attract and retain talent by offering competitive salaries.

Job Evaluation

The systematic process of determining the relative worth of jobs within an organization to establish fair compensation levels.