Question

What is the term used in the foreign exchange market which denotes the currency in which the highest faith is shown and is needed by every economy?

• A. Hard Currency
• B. Hot Currency
• C. Soft Currency
• D. Cheap Currency

Hint:

Hard currency is typically from economically stable countries and is accepted for global transactions.

Answer 1

The Correct Option is A

The term used in the foreign exchange market to denote the currency in which the highest faith is shown and is needed by every economy is Hard Currency. Hard currency refers to a globally traded currency that is stable and reliable in terms of value. It is typically issued by economically and politically stable countries and widely accepted around the world for international transactions. Examples include the US dollar, Euro, and Japanese yen.