Ask Question
BusinessBusiness
15 May, 08:35

Suppose that the Chinese central bank has been intervening in the foreign exchange market, buying U. S. dollars in the market in an effort to keep its own currency, the yuan, weak. Use the model of demand and supply for dollars to show what the immediate effect would be on the yuan/dollar exchange rate of a decision by China to allow its currency to float freely.

+3
Answers (1)
  1. 15 May, 11:53
    0
    If the Chinese Central bank stopped buying the US Dollar from the open market, on the demand graph, it will bend the demand curve of US dollar to the left, which in turn will bring about the fall in the quantity of the Yuan per dollar in equilibrium that the Yuan will appreciated against the US Dollar in the market.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Suppose that the Chinese central bank has been intervening in the foreign exchange market, buying U. S. dollars in the market in an effort ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
The mayor of Workerville proposes a local payroll tax to fund a new water park for the city. The mayor proposes to collect half the tax from workers and half the tax from firms.
Answers (1)
Research indicates that we form more positive impressions of physically attractive people than we do unattractive people.
Answers (1)
When driving always keep your eyes moving this statement means to
Answers (1)
Both the Army and Marine Corps have a capability need to procure additional helicopters beyond the number specified in the current contract; the helicopter program is currently in production.
Answers (1)
Dana was a stay-at-home mother until her recent divorce. she went back into the paid workforce to provide for her child. she loves her job but is concerned that she is not at home to spend more time with her child. should dana be worried about this?
Answers (1)
New Questions in Business
Who controls the supply for coffe shops and beses on what factors
Answers (1)
What is an oligopoly? a. an agreement by a formal organization of producers to coordinate prices and production b. a market structure in which a few large firms dominate the market c. a market structure in which two firms have a price war d.
Answers (2)
Bradley, an employee at Symphony Inc., noticed his colleague, Adriana, stealing office supplies from the office. He placed an anonymous call to upper management to inform them about Adriana's unethical behavior.
Answers (1)
There are approximately 900,000 television households in the San Diego County market. During a Sunday afternoon in October, 50 percent of the households had their television sets turned on and 200,000 were watching a football game.
Answers (1)
Suppose Jack steals a truckload of Sony​ high-definition televisions that are owned by Electronics Store. The thief resells the televisions to​ City-Mart, which does not know that the goods were stolen.
Answers (1)
Home » Business » Suppose that the Chinese central bank has been intervening in the foreign exchange market, buying U. S. dollars in the market in an effort to keep its own currency, the yuan, weak.
Sign Up Forgot Password?