As per the current practice, the maximum part of the Global Foreign Exchange Reserves (more than 60%) and Foreign Exchange Transactions (more than 90%) take place in only one currency all over the world. Which is that currency?

Euro

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Pound Sterling

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US Dollar

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Yen

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Solution

The correct option is B US Dollar
As per the current practice, the maximum part of the Global Foreign Exchange Reserves (more than 60%) and Foreign Exchange Transactions (more than 90%) take place in only US dollar. The global foreign exchange rate is measured in terms of the value of US Dollar. Hence, US Dollar is taken as a standardise currency rate.

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