PSAT Reading Question 130: Answer and Explanation

Question: 130

It can reasonably be inferred from both Passage 2 and the graphic that

• A. international markets are increasingly comfortable using the yuan as trade currency.
• B. the United States favors using the yuan as one of the world's reserve currencies.
• C. the G20 wants to replace the yuan and other currencies with a new global currency.
• D. the IMF continues to support the yuan and other currencies in a flexible exchange system.

Correct Answer: A

Explanation:

A

Difficulty: Hard

Category: Inference

Getting to the Answer: Study the yuan's percent share of use in daily trading relative to other currencies in the graphic over time. What does this suggest about global views of the yuan? Passage 2 explicitly states that the yuan is "becoming a major world reserve currency" (lines 99–100). This is supported by the data in the chart, which shows the yuan's percent share of use in daily trading climbing from 0.5 percent in 2007 to 2.2 percent in 2013. Choice (A) is correct.