Because the United States dollar is the main reserve currency of the world, the U.S.government must pay higher interest rates to foreigners who purchase its securities.

Question

Quizplus · Accepted Answer

The status of the U.S. dollar as the world's main reserve currency allows the U.S. government to borrow at lower interest rates, not higher, because there is strong global demand for U.S. securities as safe and liquid investments.

Because the United States Dollar Is the Main Reserve Currency