FIN542

What type of exchange rate system does China use for the Yuan?

• Fully floating

• Fixed peg to the USD

• Gold-backed system

• Managed floating system

What is daily fluctuation band for the Yuan under the managed float system?

• ±1

• ±2

• ±3

• No band is applied

How many countries border with China?

• 14

• 15

• 7

• 8

What is the first item used as money before establish the barter system?

• Salt

• Tea Bricks

• Stone money

• Sea shells

What is the name of China's digital currency initiative?

• e-Coin

• Digital Renminbi

• e-CNY ( Digital Yuan )

• Crypto-Yuan

What kind of room has no door and windows?

• Mushroom

• Room service

• Living room

• Games room

Why does maintaining a weaker Yuan benefit China's exports?

• It reduces import prices

• It increases consumer savings

• It makes Chinese goods cheaper globally

• It boosts domestic inflation

What was the approximate exchange rate of the Yuan to the US Dollar in October 2023?

• 6.50 CNY/USD

• 6.75 CNY/USD

• 7.33 CNY/USD

• 7.75 CNY/USD

What limits the Yuan from becoming a fully international reserve currency?

• High inflation

• Lack of investor interest

• Strict capital controls and limited covertibility

• Overdependence on oil exports

Which Chinese sector faced a crisis contributing to economic uncertaity from 2023-2025?

• Telecommunications

• Real estate

• Energy

• Agriculture