If the People's Bank of China adopted a flexible exchange rate ...

[penguins]

If the People's Bank of China adopted a flexible exchange rate policy
 
  A) the U.S. dollar would depreciate.
  B) the U.S. dollar would appreciate.
  C) the yuan would depreciate.
  D) the yuan-U.S. dollar exchange rate would rise.

Question 2

Banks create money whenever they
 
  A) accept a deposit.
  B) lend excess reserves to a borrower.
  C) receive monthly payments on their loans.
  D) receive interest on existing loans.

[Jmfn03]

Answer to Question 1

A

Answer to Question 2

B