Question

The US dollar is considered as the common currency for calculation of the economic indicators and development. Which of the following could be the reason behind such a practice?

• A. Most of the countries use the US dollar as their national currencies.
• B. It provides the convenience of calculation as countries use various currencies.
• C. The WTO officially declared the US dollar as the international currency.
• D. The US dollar is the only widely accepted currency for international transactions.

Answer 1

The correct option is B It provides the convenience of calculation as countries use various currencies.

Countries across the world use various currencies. To measure and compare economic indicators and development, it is necessary to have a common currency for all the countries. The US dollar is used as the common currency for this purpose.