China has used a fixed yuan exchange rate and a crawling peg exchange rate.In both cases, China pegs its currency to the
A)euro.
B)Japanese yen.
C)Mexican peso.
D)U.S.dollar.
E)Russian ruble.

Question

Quizplus · Accepted Answer

China has historically pegged its currency, the yuan, to the U.S. dollar in order to stabilize its exchange rate and make its export prices more competitive. The crawling peg exchange rate system allows China to adjust the exchange rate gradually in response to market forces, while still maintaining a fixed relationship with the U.S. dollar. Additionally, the U.S. dollar is one of the world's most traded currencies and a key currency in international trade and finance, making it a logical choice for China to anchor its currency to.

China Has Used a Fixed Yuan Exchange Rate and a Crawling