For many years, China tightly managed its currency through intervention and capital controls, effectively pegging the yuan to the U.S. dollar (a rate of about 8 yuan per dollar). Which of the exchange rate regimes discussed in the textbook did China have at that time?
A. Purchasing-power-parity exchange rate
B. Fixed exchange rate
C. Flexible exchange rate
D. Partially-flexible exchange rate
Answer: B
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