A key reason that the value of the dollar did not change relative to the Chinese yuan in the early 2000s was:
A)trade was balanced between the two nations.
B)the U.S. Federal Reserve bought dollars to keep the value of the dollar from falling.
C)the Chinese central bank bought dollars to keep the value of the dollar from falling.
D)the Chinese central bank sold dollars to keep the value of the dollar from rising.

Question

Quizplus · Accepted Answer

The Chinese central bank bought dollars to keep the value of the dollar from falling. This action helped maintain a favorable exchange rate for China, making its exports cheaper and more competitive in the global market.

A Key Reason That the Value of the Dollar Did