When someone says that they're "buying American dollars" (USD), what type of asset are they probably...

When someone says that they're "buying American dollars" (USD), what type of asset are they probably buying? They're probably buying:

(a) Short term debt denominated in USD, for example lending to a US bank as a USD deposit.

(b) Long term debt denominated in USD, for example lending to a US company by buying their USD bonds.

(c) Shares denominated in USD, for example buying shares in Coca-Cola which is listed on the NYSE.

(d) Real estate denominated in USD, for example buying an apartment in Chicago.

(e) Commodities with USD, for example buying gold, wheat, or coal.

Expert Solution

Option A is correct

Short term debt denominated in USD, for example lending to a US bank as a USD deposit.

Buying American Dollars, mean buying short term assets denominated in USD, like T bonds etc

jeff jeffy answered 2 years ago

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