Which of the following statements is true regarding hard currencies?
A) Countries with hard currency typically use the barter system when exporting goods.
B) The U.S. dollar is an example of hard currency.
C) Hard currency is difficult to convert into other currency.
D) A country with hard currency is likely to have a trade deficit.

Question

Quizplus · Accepted Answer

Hard currency refers to a currency that is widely accepted and in high demand globally. The U.S. dollar is one such currency, as it is widely accepted and used for international transactions. Option A is incorrect, as countries with hard currency do not typically use the barter system. Option C is also incorrect, as hard currency is actually easy to convert into other currencies. Option D is not necessarily true - a country with hard currency may have a trade surplus or deficit.

Which of the Following Statements Is True Regarding Hard Currencies