StanChart's Zhang Sees USD-CNY at 6.92 by End of the Year

StanChart's Zhang Sees USD-CNY at 6.92 by End of the Year

Assessment

Interactive Video

Business

University

Hard

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The video discusses the US Treasury's decision not to label China as a currency manipulator, citing the criteria from the Trade Act of 2015. It explores the potential for currency intervention by Chinese authorities and the factors influencing the Yuan's defense line at 7. The discussion includes the declining money supply relative to GDP, liquidity management strategies, and capital outflow trends, comparing current conditions to those in 2015.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is one of the criteria for a country to be labeled as a currency manipulator under the Trade Facilitation and Trade Act of 2015?

Having a trade surplus with the US

Intervening in the currency market repeatedly

Having a GDP growth rate above 5%

Maintaining a fixed exchange rate

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why is the exchange rate level of 7 considered significant in the context of Chinese currency?

It represents a historical high

It is a psychological barrier for investors

It is the average exchange rate over the past decade

It is the level at which China will automatically intervene

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What economic indicator has been declining in China since 2017, according to the transcript?

Inflation rate

Foreign direct investment

M2 growth relative to nominal GDP

Unemployment rate

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How does the current capital outflow from China compare to the period from August to October 2015?

It is significantly higher now

It is about the same

It is lower now

It is unpredictable

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is one reason the capital outflow from China is currently contained?

Reduction in export tariffs

Devaluation of the currency

Tightening of liquidity measures

Increased foreign investment