question_answer

Developments in the US, especially the rise of the dollar, will have implications for China's currency and currency policy. Consider the following statements in relation to it and choose the correct code given below.

Statement I: If China is able to successfully re balance its economy, the spillover effects on India and the rest of the world will be positive.

Statement II: Further declines in the yuan, even if dollar-induced, could interact with underlying vulnerabilities to create disruptions in China that could have negative spillovers for India.

The correct code is -

A) Only I correct

B) Only II is correct

C) I & II both are correct

D) Neither I nor II is correct