Current levels of domestic inflation make it a lot easier for the government of China to accept a stronger domestic currency (the Yuan). Until recently, the government was concerned that strengthening the Yuan would lead to domestic deflation. Chinese trade surpluses are resulting in the accu- mulation of foreign exchange reserves equal to $1 billion a day. Trading partners, especially the United States, are keen to see a stronger Yuan, hoping that it will pull back the level of trade surplus. Imported commodities the raw materials necessary for Chinas manufacturing industry have become far more expensive and a stronger Yuan will help offset some of these increases.
Question: The author expects the reader to know that the domestic currency of China is called the Yuan.
Options:
A. true
B. false
C. uncertain
Answer: B