If China Has Domestic Assets of $50 Billion, Domestic Liabilities

Multiple Choice

If China has domestic assets of $50 billion, domestic liabilities of $100 billion, and $50 billion in foreign assets, a 10% appreciation of the Chinese yuan will:

A) cause the Chinese domestic assets to increase in value.
B) cause the Chinese domestic liabilities to decrease in value.
C) cause the overall wealth to decrease by 5%.
D) cause the overall wealth to increase by 5%.