To Prevent Inflation Caused by Holding So Much Foreign Currency,China

question 10

Multiple Choice

To prevent inflation caused by holding so much foreign currency,China must

• A)Fix its exchange rate lower.
• B)Allow the dollar to float.
• C)Allow the yuan to float with supply and demand and cause it to depreciate.
• D)Allow a floating yuan to cause it to appreciate.

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Definitions:

Elemental Symbol

A one or two-letter abbreviation derived from the element's name in English or Latin, representing a chemical element on the periodic table.

Platinum

A chemical element with the symbol Pt and atomic number 78, a dense, malleable, ductile, highly unreactive, precious, silverish-white transition metal.

Atomic Symbol

A one or two-letter notation derived from the Latin name of an element, used to represent an element in chemical equations.

Tin

A chemical element with the symbol Sn and atomic number 50, known for its malleability, ductility, and resistance to corrosion.