Question

1) Why is the U.S. Dollar the World currency?

2) Why does the world not adopt the yen, euro, or rubal?

3) What is the balance of payments?

Answer 1

A currency which accepted as a thought the global known as the "global currency" or "world currency" or "reserve currency" for in foreign trade.

The most powerful currency in the as reserve currency in the international trade is US Dollar due to following the reasons

• The Bretton Woods Agreement during the Gold standard period Dollar accepted as a reserved currency by the nations even after collapsing of dollar remains as a reserved currency
• The relative strength of the US economy compares to the other economy.

2) Even Yen, Rubal, Euro are considered as a reserved currency but it is not accepted as a thought world because the economic strength of this currency compared to US country is not much power.

3) BOP Balance Of Payment shows the countries transaction to the rest of the countries.Inflow and the outflow of the money into different categories and there are two important section of the BOP

• Current Account: Trade, Goods, Service, Investment, and Service.
• Financial Account: FDI, Capital Flows, Prortfolio Investment.