For the country using another country's currency for domestic transactions,the result is usually:
A)that the country whose currency is being used formally requests that it's currency not be used.
B)the country whose currency is being used encourages the use of its currency because it increases demand for and the value of the currency.
C)the currency markets stop making the currency of the country that is being used available to the country that is using that currency.
D)that the country's citizen end up holding substantial assets denominated in the currency of the other country that is being used.

Question

Quizplus · Accepted Answer

If a country uses another country's currency for domestic transactions, it means that the citizens of that country end up holding assets denominated in the currency of the country whose currency is being used. This is because they need that currency to conduct transactions within their own country. It is, therefore, likely that citizens will end up holding substantial assets in the foreign currency.

For the Country Using Another Country's Currency for Domestic Transactions,the