The United States realizes several benefits from the dollar serving as the main reserve currency of the world, including

Question

Quizplus · Accepted Answer

All of the benefits listed in options A, B, and C are correct. As Americans can use the dollar for most international transactions, it eliminates the need to exchange currency frequently, which results in marginal cost savings. Additionally, since the demand for the dollar is high, Americans can borrow at lower interest rates. This is because people around the world are willing to lend the dollar at a lower interest rate because it is regarded as a relatively safe asset, and the U.S. government can finance larger deficits longer and at lower interest rates.

The United States Realizes Several Benefits from the Dollar Serving