China buys US Bonds

Go further into depth with the China-United states trade scenario, this time investigating what the Chinese government does with the dollars they collect. Sal reminds scholars of why the Chinese Central Bank prints Yuan to purchase dollars, and explains the process of lending it to the US in the form of treasury bonds. He also briefly goes over the difference between treasury bonds and bills. Learners see how this increased demand for treasury assets effects the US economy, in particular interest rates.

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Resource Details

11th - Higher Ed
Social Studies & History
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For Teacher Use
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Instructional Strategy
Flipped Classroom
Closed Captions
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Creative Commons
BY-NC-SA: 3.0