Why is the u.s. dollar considered a vehicle currency, International Economics

Assignment Help:

Q. Explain what a "vehicle currency" is. Why is the U.S. dollar considered a vehicle currency?

Answer: A vehicle currency is one specifically widely used to denominate international contracts made by parties who don't reside in the country that issues the vehicle currency. While 2001 ninety percent of foreign exchange transactions engross exchanges of foreign currencies for U.S. dollars so the dollar is considered a vehicle currency.


Related Discussions:- Why is the u.s. dollar considered a vehicle currency

Real exchange rate affects exports and imports, Q. Explain how an i...

Q. Explain how an increase in the real exchange rate affects exports and imports. Answer: While the real exchange rate rises domestic products are cheaper relative to

Factors affecting the demand for foreign currency, Q. What are the factors...

Q. What are the factors affecting the demand for foreign currency? Answer: Three factors that affect the demand for foreign currency are risk, expected return, and liquidity.

Economics, describe the U.S role in the world economy

describe the U.S role in the world economy

Important benefits enjoyes by companies through TRIPs, Describe the importa...

Describe the important benefits enjoyed by indian companies through TRIPs. Elaborate the main objective of WTO in global ecomommy

Excessive current account surpluses, Q. Why do governments prefer to avoid ...

Q. Why do governments prefer to avoid excessive current account surpluses? Or, why are growing domestic claims to foreign wealth ever a problem? Answer: On behalf of a given l

Market structures, how does the buying and selling of stock fit the model f...

how does the buying and selling of stock fit the model for perfect competition

Float-rate regime against non-euro currencies, Q. Explain why after, say No...

Q. Explain why after, say Norway unilaterally pegs the krone to the euro, domestic money market disturbances will no longer affect domestic output despite the continuation of float

Economic situattion, what is the current economic situation in the world?

what is the current economic situation in the world?

Self-fulfilling expectations, Q. "It is in the interest of each depositor ...

Q. "It is in the interest of each depositor to withdraw her money from a bank if all other depositors are doing the same, even when the bank's assets are sound." Discuss. As par

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd