Class 10 Exam  >  Class 10 Questions  >  Why is US dollar considered to be a internati... Start Learning for Free
Why is US dollar considered to be a international currency? . Y not other currencies?
Most Upvoted Answer
Why is US dollar considered to be a international currency? . Y not ot...
Https://youtu.be/Z8K3i9ZVxuc

maybe u find the answer by clicking on this youtube link....
Community Answer
Why is US dollar considered to be a international currency? . Y not ot...
The US dollar is considered an international currency for various reasons which include its stability, wide acceptance, and its role as a reserve currency. Let's delve into the details:

Stability:
The stability of a currency is vital for it to become an international currency. The US dollar has been historically stable due to the strong and stable economy of the United States. This stability is attractive to individuals, businesses, and governments as it minimizes the risks associated with currency fluctuations.

Wide Acceptance:
The US dollar is widely accepted around the world, making it convenient for international transactions. Many countries, especially in developing economies, prefer to use the US dollar as a medium of exchange for international trade. This wide acceptance is due to the dominance of the United States in global trade and its position as the largest economy.

Reserve Currency:
The US dollar also serves as a reserve currency, which means that central banks and governments hold significant amounts of US dollars as part of their foreign exchange reserves. This status as a reserve currency provides stability to the US dollar and increases its demand globally. The US dollar's reserve currency status is a legacy of the Bretton Woods system established in 1944, where the US dollar was pegged to gold and other countries fixed their exchange rates to the US dollar.

Global Trade and Financial System:
The dominance of the United States in global trade and the international financial system plays a crucial role in the US dollar's status as an international currency. Many commodities, such as oil, are priced in US dollars, and international trade is often conducted in US dollars. Additionally, major international financial institutions, such as the International Monetary Fund (IMF) and the World Bank, use the US dollar as their primary currency for transactions.

Conclusion:
In summary, the US dollar is considered an international currency due to its stability, wide acceptance, reserve currency status, and the dominant role of the United States in global trade and finance. These factors have contributed to the US dollar's position as the primary currency for international transactions and have solidified its status as a global currency.
Explore Courses for Class 10 exam

Similar Class 10 Doubts

Read the source given below and answer the questions that follows:The exchange of goods among people, states and countries is referred to as trade. The market is the place where such exchanges take place. Trade between two countries is called international trade. It may take place through sea, air or land routes. While local trade is carried in cities, towns and villages, state level trade is carried between two or more states. Advancement of international trade of a country is an index to its economic prosperity. It is, therefore, considered the economic barometer for a country. As the resources are space bound, no country can survive without international trade. Export and import are the components of trade. The balance of trade of a country is the difference between its export and import. When the value of exports exceeds the value of imports, it is called a favourable balance of trade. On the contrary, if the value of imports exceeds the value of exports, it is termed as an unfavourable balance of trade. India has trade relations with all the major trading blocks and all geographical regions of the world. Among the world, the commodities exported from India to other countries include gems and jewellery, chemicals and related products, agriculture and allied products, etc. The commodities imported to India include petroleum crude and products, gems and jewellery, chemicals and related products, base metals, electronic items, machinery, agriculture and allied products. India has emerged as a software giant at the international level and it is earning large foreign exchange through the export of information technology.Answer the following MCQs by choosing the most appropriate option.Q. What is trade between two countries called and how does it takes place?

Top Courses for Class 10

Why is US dollar considered to be a international currency? . Y not other currencies?
Question Description
Why is US dollar considered to be a international currency? . Y not other currencies? for Class 10 2025 is part of Class 10 preparation. The Question and answers have been prepared according to the Class 10 exam syllabus. Information about Why is US dollar considered to be a international currency? . Y not other currencies? covers all topics & solutions for Class 10 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Why is US dollar considered to be a international currency? . Y not other currencies?.
Solutions for Why is US dollar considered to be a international currency? . Y not other currencies? in English & in Hindi are available as part of our courses for Class 10. Download more important topics, notes, lectures and mock test series for Class 10 Exam by signing up for free.
Here you can find the meaning of Why is US dollar considered to be a international currency? . Y not other currencies? defined & explained in the simplest way possible. Besides giving the explanation of Why is US dollar considered to be a international currency? . Y not other currencies?, a detailed solution for Why is US dollar considered to be a international currency? . Y not other currencies? has been provided alongside types of Why is US dollar considered to be a international currency? . Y not other currencies? theory, EduRev gives you an ample number of questions to practice Why is US dollar considered to be a international currency? . Y not other currencies? tests, examples and also practice Class 10 tests.
Explore Courses for Class 10 exam

Top Courses for Class 10

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev