100k views
2 votes
Apply the correct label to indicate the result of each event for the dollars-per-yuan exchange rate between the United States and China.

User Meuu
by
6.9k points

2 Answers

4 votes

Answer:

Explanation:

Apply the correct label to indicate the result of each event for the dollars-per-yuan-example-1
User Jayesh Goyani
by
6.5k points
5 votes

The indicated result of each event for the dollars-per-yuan exchange rate between the United States and China are;

The U.S. Fed sells a large block of U.S. Treasury securities, receiving dollars as payment ↔ The rate goes down.

The U.S. Fed buys a large block of U.S. Treasury securities, using dollars ↔ The rate goes up.

China's central bank buys a large block of U.S. Treasury securities, making payment in yuan ↔ The rate goes down.

China's central bank sells off a large block of U.S. Treasury securities, receiving yuan as payment ↔ The rate goes up.

The Federal Reserve is commonly referred to as the " U.S Fed" and it was enacted into law by the Federal Reserve Act to performs similar operations as a central bank in other countries.

The exchange rate would go down when the U.S. Fed sells a large block of U.S. Treasury securities, receiving dollars as payment. Also, the exchange rate would go up when the U.S. Fed buys a large block of U.S. Treasury securities, using dollars.

Furthermore, the exchange rate would go down when the central bank of China buys a large block of U.S. Treasury securities, making payment in yuan. The exchange rate would go up when the central bank of China sells off a large block of U.S. Treasury securities, receiving yuan as payment.

Complete Question;

Apply the correct label to indicate the result of each event for the dollars-per-yuan exchange rate between the United States and China.

The U.S. Fed sells a large block of U.S. Treasury securities, receiving dollars as payment.

The U.S. Fed buys a large block of U.S. Treasury securities, using dollars.

China's central bank buys a large block of U.S. Treasury securities, making payment in yuan.

China's central bank sells off a large block of U.S. Treasury securities, receiving yuan as payment.

The rate goes up.

The rate goes down.

User Vincent Jacquel
by
6.7k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.