In recent years, the United States has accused China of manipulating the yuan so as to gain an unfair competitive advantage in global trade.The United States has argued that the central bank of China has
A) sold yuan and bought dollars, thus depreciating the yuan against the dollar.
B) sold yuan and bought dollars, thus appreciating the yuan against the dollar.
C) bought yuan and sold dollars, thus depreciating the yuan against the dollar.
D) bought yuan and sold dollars, thus appreciating the yuan against the dollar.

Question

Quizplus · Accepted Answer

Selling yuan and buying dollars would increase the supply of yuan in the market, leading to a depreciation of the yuan against the dollar. This would make Chinese exports cheaper and US imports more expensive, giving China an advantage in global trade.

In Recent Years, the United States Has Accused China of Manipulating