If a country's currency is _____, then the country can borrow from other countries almost without limit by issuing assets that will be held by the central banks of other countries.

Question

Quizplus · Accepted Answer

A reserve currency is a currency that is held in significant quantities by many governments and institutions as a means of international payment and exchange. Countries with reserve currencies (such as the US dollar or the Euro) have the ability to borrow almost limitlessly from other countries by issuing assets that can be held by central banks of other countries.

If a Country's Currency Is _____, Then the Country Can