The sharp increase in foreign holdings of US dollars at the start of the twenty-first century was caused by which of the following?
A) Financial crisis in East Asia
B) War in Iraq
C) American financial crisis
D) Both A and B
E) All of the above

Question

Quizplus · Accepted Answer

The sharp increase in foreign holdings of US dollars at the start of the twenty-first century was influenced by both the financial crisis in East Asia, which led to increased savings and investment in US assets as a safe haven, and the war in Iraq, which contributed to global economic uncertainties, prompting more investments in US dollars as a stable reserve currency.

The Sharp Increase in Foreign Holdings of US Dollars at the Start