Correct option is B
The correct answer is (b) USD.
Explanation:
- The United States Dollar (USD) is the most traded currency in the world and serves as the global reserve currency.
- According to the Bank for International Settlements (BIS) 2022 report, the USD is involved in approximately 88% of all global forex (foreign exchange) transactions.
- It is widely used in international trade, and investments, and as a benchmark currency for commodities like oil and gold.
- The USD's dominance is due to the economic strength of the United States, its stability, and its use in global financial institutions.
Information Booster:
Most Traded Currencies in the World (2022 BIS Report):
Rank | Currency | ISO Code | % of Global Forex Trades |
1 | US Dollar | USD | 88% |
2 | Euro | EUR | 31% |
3 | Japanese Yen | JPY | 17% |
4 | British Pound | GBP | 13% |
5 | Chinese Yuan | CNY | 7% |
Why is the USD the Most Traded Currency?
- Global Reserve Currency – Held by central banks worldwide as a safe asset.
- International Trade Standard – Used in global commodity pricing (oil, gold, etc.).
- US Economic Influence – The United States has the world's largest economy.
- Financial Market Liquidity – Widely used in international banking and investments.
Additional Knowledge: dinar used in several Middle Eastern countries, including Algeria, Bahrain, Iraq, Jordan, Kuwait, Libya, and Tunisia.
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