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.

Concepts

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trade imbalance, trade, appreciation, deflation, depreciation, exports, imports, inflation, supply and demand, the people's bank of china, currency exchange

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Additional Tags

trade imbalance, currency exchange, chinese central bank, people's bank of china, export, import, inflation, deflation, appreciate, depreciate, supply and demand, treasury bond, treasury note, treasury bill, us treasury, social studies

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Resource Details

Grade

11th - Higher Ed

Subjects

Social Studies & History

1 more...

Resource Type

Instructional Videos

Media Length

2:51

Audiences

For Teacher Use

1 more...

Instructional Strategy

Flipped Classroom

Accessibility

Closed Captions

Usage Permissions

Creative Commons

BY-NC-SA: 3.0