What is a key characteristic that has allowed the US Dollar to maintain its status as the

A) Its peg to the price of gold, guaranteeing its value.

B) The large size, stability, and liquidity of the US economy and its financial markets.

C) Its non-convertibility for foreign investors, limiting supply.

D) Its exclusive use in all international oil transactions globally.

Explanation

The US Dollar's dominance as a reserve currency is primarily due to the strength and stability of the US economy, the depth and liquidity of its financial markets, and its role as a safe haven currency during global uncertainties. It is not pegged to gold, nor is its use exclusive in oil trade, and it is fully convertible.

Practice More World Current Affairs Questions

What is a key characteristic that has allowed the US Dollar to maintain its status as the world's primary reserve currency?

Explanation