Since the late 1990s, to prevent the yuan from appreciating against the U.S. dollar, the Chinese central bank

Question

Quizplus · Accepted Answer

The best answer is B, as this has been the primary strategy of the Chinese central bank to prevent the yuan from appreciating against the U.S. dollar. By buying dollars and selling yuan in the foreign exchange market, the central bank increases the supply of dollars and decreases the supply of yuan, which helps to maintain a lower exchange rate for the yuan relative to the dollar.

Since the Late 1990s, to Prevent the Yuan from Appreciating