In the article on China holding $4 trillion in dollars,for every dollar it holds in reserves,it prints

Question

Quizplus · Accepted Answer

China's central bank, the People's Bank of China, must print yuan in order to buy dollars to hold in its foreign exchange reserves. The current exchange rate is approximately 6.5 yuan to one US dollar, so for every dollar in reserves, the central bank would print approximately 6.5 additional yuan. Therefore, the correct answer is B) 6.5 additional yuan for the domestic money supply.

In the Article on China Holding $4 Trillion in Dollars,for