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The Exchange Rate Policy of a "Crawling Peg" Adopted by the Chinese

Question 40

Multiple Choice

The exchange rate policy of a "crawling peg" adopted by the Chinese government in 2005 means that the government


A) allowed small and controlled changes in the exchange-rate value over time.
B) pegged the Yuan to the U.S.dollar at the equilibrium exchange rate.
C) held a balanced portfolio of assets including a variety of foreign currencies.
D) caved in to pressures from foreign governments.

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