Because the United States continues to run significant ___________, some have argued that ____________ should be a reserve currency, because it is _______________.
A) current account surpluses, the Swiss franc, more fiat-based than the U.S. dollar
B) current account deficits, a cryptocurrency, a more sound money
C) capital and financial account deficits, the British pound, more highly valued now after Brexit
D) current account deficits, the Euro, more fully backed by gold than the dollar

Question

Quizplus · Accepted Answer

Cryptocurrencies are often argued to be a more sound form of money due to their decentralized nature and limited supply, contrasting with fiat currencies like the U.S. dollar, which can be subject to inflation and are controlled by central authorities. This argument gains traction in the context of the U.S.'s significant current account deficits, which reflect the country spending more on foreign trade than it is earning.

Because the United States Continues to Run Significant ___________, Some