The People's Bank of China has
A) allowed a flexible exchange rate to boost exports.
B) managed its exchange rate to help control inflation.
C) strictly followed a fixed exchange rate to boost exports.
D) purchased U.S. dollars to appreciate the yuan.

Question

Quizplus · Accepted Answer

The People's Bank of China has historically managed its exchange rate as a tool to control inflation and stabilize its economy, rather than strictly following a fixed exchange rate or allowing a fully flexible exchange rate. Purchasing U.S. dollars is typically done to prevent the yuan from appreciating too rapidly, not to appreciate it.

The People's Bank of China Has