The vast majority of the foreign-exchange reserves held by central banks are denominated in
A)local currencies.
B)U.S.dollars.
C)Yen.
D)Euro.

Question

Quizplus · Accepted Answer

The most common foreign currency held by central banks in their foreign-exchange reserves is the U.S. dollar. This is because the U.S. dollar is the most widely used currency in international trade and financial transactions, and is considered a stable and reliable currency.

The Vast Majority of the Foreign-Exchange Reserves Held by Central