Why does a balence of payments defict for the United States heve a different effect on its internatonal resarves then a balance of pevments defict does on the Natheriands? A. The US. dollar is used as a reserve currency by many tforeign central banks B. The federel Reserve is tangeting intietion end not the belance of payments. Oc. US.intemational reserves are denominated in goid. OD. The Netheriands is a member of the Eurozone.

MACROECONOMICS
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Chapter19: The International Monetary System: Order Or Disorder
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Why does a balance of payments deficit for the United States have a different effect on its international reserves then a balance of payments deficit does on the Netherlands?
OA. The U.S. dollar is used as a reserve currency by many foreign central banks.
OB. The Federal Reserve is targeting intlation and not the balance of payments.
Oc. U.S. intemational reserves are denominated in goid.
O D. The Netherlands is a member of the Eurozone.
Transcribed Image Text:Why does a balance of payments deficit for the United States have a different effect on its international reserves then a balance of payments deficit does on the Netherlands? OA. The U.S. dollar is used as a reserve currency by many foreign central banks. OB. The Federal Reserve is targeting intlation and not the balance of payments. Oc. U.S. intemational reserves are denominated in goid. O D. The Netherlands is a member of the Eurozone.
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