China Fixes Its Exchange Rate (Yuan Per Units of Foreign

question 114

Multiple Choice

China fixes its exchange rate (yuan per units of foreign currency) at a rate above its free-market equilibrium level.In order to maintain this exchange rate,and to prevent its currency from ________,the Chinese central bank must be accumulating ________.

• A)appreciating; foreign-exchange reserves
• B)appreciating; reserves of its domestic currency
• C)depreciating; foreign-exchange reserves
• D)depreciating; reserves of its domestic currency
• E)depreciating; U.S.dollars

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Definitions:

Episodic Memory

A type of long-term memory that involves the recollection of specific events, situations, and experiences from one's own life.

Nondeclarative Memory

A type of long-term memory that does not require conscious thought to retrieve, including skills, habits, and learned reflexes.

Prospective Memory

The aspect of memory that involves the ability to remember to perform an action at a future point in time.

Temporally Dated

Specific to a particular time or associated with a particular period.