China holds a massive amount of foreign exchange reserves. As of 2010 they held nearly $2,500 billion. This huge foreign exchange reserve should allow China to
A) manage the value of the Chinese yuan to maintain competitiveness in world markets.
B) maintain a relatively stable managed fixed exchange rate for the yuan for years to come.
C) remain a very important player in world trade for at least the next several years.
D) All of the above.

Question

Quizplus · Accepted Answer

China's massive foreign exchange reserves give them the ability to manage the value of the yuan, maintain a stable exchange rate, and remain a significant player in world trade.

China Holds a Massive Amount of Foreign Exchange Reserves