Continued U

question 65

Multiple Choice

Continued U.S. trade deficits coupled with foreigners' desire to diversify their currency holdings away from U.S. dollars

• A)could further diminish the position of the dollar as the dominant reserve currency.
• B)could affect the value of U.S. dollar (e.g. through the currency diversification decisions of Asian central banks).
• C)could lend steam to the emergence of the euro as a credible reserve currency.
• D)all of the above

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