From the course: Economic Tips for Everyone

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Why dollars?

Why dollars?

From the course: Economic Tips for Everyone

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Why dollars?

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- Why are dollars the world's primary reserve currency? It's because the US economy is so big and there are so many dollars out in the world. There just aren't enough British pounds, Japanese yen, or Swiss francs to use as a medium of exchange and facilitate international transactions. Plus the dollar is prominently used in the global economy because every country can trade dollars for other currencies. Well, some people see currencies as something you can invest in. The greatest value of the dollar is as a medium of exchange. In short, if you have dollars, you can do transactions with them. This is why the dollar is the primary global reserve currency and why it could be for a long time to come.

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