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In Order to Maintain a Pegged Exchange Rate in China

Question 67

Multiple Choice

In order to maintain a pegged exchange rate in China,


A) the Chinese government must prevent Chinese citizens from trading goods or services with other countries.
B) the Chinese government must prevent Chinese citizens from purchasing assets denominated in foreign currencies.
C) the Chinese government must adjust the supply of the yuan in world markets.
D) at least one foreign country must also maintain a pegged exchange rate.
E) no other country with which China shares a geographical border can maintain a pegged exchange rate.

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