ipl-logo

Chinese Start To Lose Confidence In Their Currency Summary

753 Words4 Pages

The article “Chinese Start to Lose Confidence in Their Currency” shows the economic situation in China is not good. The devaluation of the renminbi and the stock market declining is making more and more people worried about China’s economy. Many Chinese people are trying to move large amounts of money out of the country, because they think renminbi’s value will keep deceasing. China has never faced an economic disaster like this before. For many years, China’s annual economic growth rate was in double digits. However, the Chinese government is thinking of ways to solve this problem. The government restricts people from transferring renminbi into dollars. Because of this cash control, each person can only transfer $50,000 a year. Also the Chinese government is cutting interest rates, so that people will not save money and instead spend their money. At the same time, the Chinese government is purchasing a large amount of renminbi. The Chinese government has a firm faith that they will do whatever they can to conquer this challenge. …show more content…

From the title of the article, “Chinese Start to Lose Confidence in Their Currency”, there is a word “currency”, which shows the relationship with economy. Money is the most important part in the economic system. People use money to buy the products they want and earn money from their jobs. Also from the content of this article, it introduces the current situation of China’s currency, renminbi. The devaluation of renminbi causes more and more people to not want to conserve renminbi. Also the Chinese government restricts people from changing renminbi into other currency, in order to incentivize people to spend their money. Both the content and the title focus on Chinese currency, renminbi. As a result, this article is about the variable,

Show More
Related

Swimming Against The Currency Tide Eleanor Beaton

1063 Words | 5 Pages

The effects of a change in the exchange rate. After entering the US market through exporting the company faced challenges regarding the value of its currency. When the value of the Canadian dollar started to rise, its exchange rate changed. “The exchange rate is the value of one nation’s currency relative to the currencies of other countries” (BUS1201 Custom Text 2012, p.71).

Read More

Silver Trade Dbq

1183 Words | 5 Pages

If they don’t have enough silver they must borrow from a “moneylender”. In all likelihood this means that many Chinese city dwellers are in debt, leading to cities with distinct social classes. The rich will continue to live a luxurious life with all the silver currency, while the poor will continue to suffer in search for money (Doc.

Read More

Naked Economics Chapter 2 Study Guide

487 Words | 2 Pages

I am amused by the answers provided here. The most amazing thing is no one have any idea about how economics work. I am not an economics expert, but this is the probably first thing you'll be taught in economics after demand/supply curve. Currency prices works like an index of prosperity in the respective nation.

Read More

How Did The Flow Of Trade Affect The Globalization Of Silver Dbq

991 Words | 4 Pages

The China economy was affected because of the globalization of silver that cause more people to be alter in ways. Most reasonable result of the silver being global, is the ‘greed’ that was direct towards money alone. People of the era all had thoughts of the changes. In Document 1, by a county official named Ye Chunji, wrote on the greed of the Chinese people. He stated how “The frugal man with only one bar of silver currency can have something left over, whereas the extravagant man with a thousand can still not have enough.”, telling how the men with enough money or silver coins to support their life, is still not satisfied with that amount, yet the men with just one bar of silver can be happy with just that because they can live off that alone for some time.

Read More

Report On China Islest

456 Words | 2 Pages

However, a Defense Ministry spokesman said that China’s military would take all necessary measures to any future US Navy incursions. One person in the article believes that China or any country shouldn’t be using their size or influence to try to resolve sovereignty claims in the South China Sea. The person also believed that the recent US military operation was not to challenge China on sovereignty claims. While China wants to claim virtually all of the entire South China Sea and its islands, the US believes in the freedom of

Read More

Mongol Influence On Eurasia

726 Words | 3 Pages

However, people in china lost confidence in the currency due to inadequate reserves of bullion for paper notes, which created a rise in prices. The diminished value of paper money became one of the major reasons for the decline of the Yuan dynasty. Although paper money was introduced at different times and for different reasons, under mongol rule, the decline of both empires was partly due to the loss of confidence in paper

Read More

How Did Zheng He Impact On China

1734 Words | 7 Pages

Having a strong military is what every country desires to have. If you have a strong and powerful military, you are able take land, defend land, live in peace, or attack when needed. Reporter Caroline Hsu wrote, “China was a lone superpower at the time, with the military force to crush almost any opposition.” The military was so strong at the time that they were able to be thought of 500 years later as the lone superpower of that time. This allowed them to go out and get almost anything that they desired as they could destroy any kind of military that stands in their way.

Read More

Social Groups In Susan Eloise's The Outsiders

404 Words | 2 Pages

No matter how much time has passed. There will always be groups and with groups there will always be outsiders. In the 1960s, Susan Eloise wrote the book “The Outsiders” but she put S.E. Hinton as the author so that she wouldn’t be judged. “The Outsiders” takes place in her hometown Tulsa, Oklahoma. It is a story about two social groups; the Greasers; and the Socs; who feel like outsiders.

Read More

Summary Of Jung Chang's Wild Swans: Three Daughters Of China

1083 Words | 5 Pages

It also included widespread fighting among warlords. A quote that represents how hard the Great Depression was for industrial business owners is, “but it was the time of widespread fighting among warlords, who all levied heavy taxes. This, combined with the effects of the Great Depression, made it an extremely difficult time to run a textile factory” (Chang 104). Also, prior to the establishment of the Renminbi becoming the national currency in 1935, there were many different forms of payment. For example, in the book, it is mentioned that the only way to get her brother out of prison was to raise, “1,000 pieces of silver” (Chang

Read More

The Federal Reserve: Its Role In US

1139 Words | 5 Pages

Introduction Money, its function, Federal Reserve, its role in U.S. economy such as money supply, Bitcoins, and its role in U.S. economy is the backbone of the U.S. economy in the current market. As soon as you heard the word economy you know it is all about money, market, demand, supply, price, government policies, government role, business (local/international), and many other economic factors. Function of money Money is useful in any economy because it has many universal functions such as medium of exchange, unit of value, the standard for deferred payments, and store of value. A medium of exchange: Money acts a medium of exchange in our society, which is the key function of it.

Read More

Personal Narrative: The Asian Empire

1274 Words | 6 Pages

The Chinese are gonna take over the world! They’re gonna beat us in a cultural victory like in Civ 5! First the Mongols invaded China, and after Genghis Khan died, then Kublai Khan was the one that took over the Chinese territory. But do you know what the Chinese did? They turned Kublai CHINESE!

Read More

The Thucydides Trap Summary

445 Words | 2 Pages

The best option that Allison points out is the “radical changes in attitudes and actions by leaders and publics alike” (Allison 10). First, the United States has to be open to the idea of multipolarity, and remove the ideas of being the lone superpower of the world, and accept that China is at the very least, its equal. Then, China needs to avoid being hubris and arrogant, and also accept the role of being the United State’s equal for the time being instead of continuing to try to further surpass the world. China and the United States will go to war is either one does not accept their equality with the other, and until both countries attitudes and actions reflect this equality war seems likely to be on the

Read More

The Impact Of Globalization In China

1404 Words | 6 Pages

First and foremost, one must acknowledge the plainly visible fact that the Chinese economy has grown exponentially since the process of integration into the global economic system began. China 's comparative advantages, particularly in the labor sector, has transformed it into the second largest recipient of FDI in the world.1 Over the course of the last 20 years, exports have grown approximately 17.1 percent per year.2 This ultimate result of this investment and trade has been an overall growth rate 8 percent per annum,3 which would have been completely unattainable without the country 's engagement in globalization. Foreign investments have

Read More

Factors Affecting Foreign Exchange Rates

2070 Words | 9 Pages

1) Introduction Foreign exchange transaction comprises of everything ranging from converting a currency to another currency by an individual, to giant companies and governments making payments overseas in exchange for goods and services. These foreign transactions are done in various currencies, and for better precision, determination of the exchange rates is crucial. Exchange rates distinctively vary from country to country, owing to the fact that economic variables or determinants of currency values, such as national income, inflation, trade balances, etc., which are inconstant in nature, keep changing from time to time (Wang 2008). For example, if the exchange rate of a particular country is fluctuating at the average rate of 3 per cent per month, in another country it might be fluctuating at 7 per cent per month due to the dissimilarity in the economic variables of these countries. Hence,

Read More

Roles Of Money In Macroeconomics Essay

1772 Words | 8 Pages

ROLE OF MONEY IN MACROECONOMICS 1. Introduction Money can be seen as the medium of exchange which is acceptable while transaction is being undertaken between two parties. Some of the common forms of money are: - Commodity money: This is when the value of the good represents its value in terms of money like gold or silver. - Fiat money: This is when the value of the good is less than the value it represents - Bank money: It is the accounting credits that can be used by the depositor Money serves a variety of crucial functions in the economy and this is why it has gained an unparalleled influence in the matters of economy at micro as well as macro levels. Some of the features of money that make it so important for any economy are as follows:

Read More

More about Chinese Start To Lose Confidence In Their Currency Summary

Related Topics

Open Document