Which of the following factors caused the dollar to be undermined as the main currency in international commerce?
A) China allowing its currency, the yuan, to become freely convertible
B) The creation of the euro as a highly stable currency
C) Concerns of U.S. government budget surpluses
D) The "Race to the Bottom"

Question

Quizplus · Accepted Answer

The creation of the euro as a highly stable currency has challenged the dominant role of the US dollar as the main currency in international commerce. Other factors such as China's yuan becoming more convertible and concerns with US government budget deficits have contributed to this trend, but the stability of the euro has been a significant factor. The "Race to the Bottom" refers to countries competing to devalue their currencies to gain a trade advantage, which can also undermine the role of the US dollar but is not the main factor in this case.

Which of the Following Factors Caused the Dollar to Be