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 currencies are difficult to convert into other currency.
D)A country with hard currency is likely to have a trade deficit.

Question

Quizplus · Accepted Answer

Hard currencies are those that are widely accepted and stable in value. The U.S. dollar is an example of a hard currency. Option A is incorrect because countries with hard currency do not typically use the barter system as they have a stable and widely accepted currency. Option C is incorrect because hard currencies are easy to convert into other currencies. Option D is also incorrect because countries with hard currency are likely to have a trade surplus as their currency is in demand for transactions.

Which of the Following Statements Is True Regarding Hard Currencies