Which of the following represents a problem with the Chinese yuan becoming a reserve currency?
A) China does not have an open financial market.
B) China does not have a large economy.
C) China holds too many dollars.
D) The yuan is not currently part of the SDR.

Question

Quizplus · Accepted Answer

One of the major requirements for a currency to become a reserve currency is that the country must have an open financial market. China currently does not have an open financial market, meaning there are restrictions on foreign investors and capital flows, which could hinder the yuan's ability to become a reserve currency. The other options are not necessarily problems for the yuan to become a reserve currency.

Which of the Following Represents a Problem with the Chinese