Asked by Preston Tribble on Jul 17, 2024
Verified
If US consumers want to buy Chinese goods,they will
A) Buy Yuan and sell US Dollars
B) Sell Yuan and buy US Dollars
C) Neither buy nor sell Yuan
D) Neither buy nor sell dollars
US Consumers
individuals or groups in the United States who purchase goods and services for personal use.
Chinese Goods
Products manufactured in China, often noted for their competitive pricing.
Buy Yuan
The action of purchasing the Chinese currency, the Yuan, as an investment or for financial transactions.
- Identify the effect of currency exchange rates on consumer purchasing power for the acquisition of international goods.
Verified Answer
JM
Jillian MacWilliamJul 19, 2024
Final Answer :
A
Explanation :
To purchase Chinese goods, US consumers need to exchange their US Dollars for Yuan, as transactions in China are conducted in the local currency. This involves buying Yuan and selling US Dollars.
Learning Objectives
- Identify the effect of currency exchange rates on consumer purchasing power for the acquisition of international goods.