Between 2000 and 2005, China Pegged Its Currency to the Dollar

question 104

Multiple Choice

Between 2000 and 2005, China pegged its currency to the dollar by

• A)selling dollars in the foreign exchange market.
• B)buying the Chinese currency in the foreign exchange market.
• C)decreasing its holdings of dollar reserves and increasing its holdings of domestic currency.
• D)increasing its holdings of dollar reserves and decreasing its holdings of domestic currency.
• E)doing nothing.

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Definitions:

Self-Fulfilling Prophecy

A prediction or expectation that causes itself to become true, due to the feedback between belief and behavior.

Thomas Theorem

A theory in sociology which states that if people define situations as real, they are real in their consequences, highlighting the significance of perception in social interaction.

Socializing Agents

Individuals, groups, or institutions that play a role in integrating individuals into the norms, values, and practices of a society.

Social Environment

The cultural, social, and psychological milieu that surrounds individuals and can affect their behavior and experiences.