1. In 1994, the Chinese government considered a policy of requiring all firms to deposit foreigncurrencieswithcommercialbanks.Inturn,thesebankswererequiredtoremitthesefunds(onceabove

a certain level) to the People's Republic Bank of China in exchange for Chinese Yuan. What could theimplicationsonthefirms, banks, andnational economyofsuchapolicybe?

Note: your answer should be 3-5 paragraphs. Where any outside resources as used, they should beproperlycited.