Which of the following statements is true regarding hard currencies?
A)Countries with hard currency typically use the barter system when exporting goods.
B)The U.S.dollar is an example of hard currency,which is easily converted into other currencies.
C)Hard currency is difficult to convert into other currency.
D)A country with hard currency is likely to have a trade deficit.

Question

Quizplus · Accepted Answer

Hard currency refers to a currency that is widely accepted as a form of payment for international transactions and is easily convertible into other currencies. The U.S. dollar is a prime example of hard currency as it is widely accepted globally and can be easily converted into other currencies. Therefore, statement B is true. However, statement A, C, and D are false as countries with hard currencies typically do not use the barter system, hard currency is not difficult to convert, and a country with hard currency is likely to have a trade surplus due to the demand for their currency in the international market.

Which of the Following Statements Is True Regarding Hard Currencies