Which of the Following Might Explain Why the United States

question 51

Multiple Choice

Which of the following might explain why the United States has so much currency per person?

• A)U.S.citizens are holding a lot of foreign currency.
• B)Currency may be a preferable store of wealth for criminals.
• C)People use credit and debit cards more frequently.
• D)All of the above help explain the abundance of currency.

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Definitions:

Current Account Deficit

A situation where a country's total imports of goods, services, and transfers exceed its total exports, indicating it is spending more on foreign trade than it is earning.

Exchange Rate

The value of one currency for the purpose of conversion to another, determining how much one currency is worth in terms of another.

Foreign Exchange Market

A global marketplace for trading national currencies against one another.

Economic Growth

Refers to the increase in the production of economic goods and services, compared from one period of time to another.