When two parties from different countries enter into a transaction:
A) the currency to be used for settling the transaction is set by the government.
B) a third country's currency must be used to denominate the transaction.
C) the two parties are free to decide the currency that should be used to settle the transaction.
D) the domestic currency of the buyer must be used to settle the transaction.

Question

Quizplus · Accepted Answer

When two parties from different countries enter into a transaction, they are free to decide the currency that should be used to settle the transaction. This can be based on a variety of factors such as exchange rates, convenience, and familiarity with certain currencies. There is no government mandate or requirement to use a third country's currency or the domestic currency of either party.

When Two Parties from Different Countries Enter into a Transaction