Q6 of 25 Page 131

Write the correct statement.

1. Most of the international trade transactions are carried out in US dollars.


2. No other country except the US carries out trade in the world.


I) both the statements are correct.


ii) Both the statements are wrong.


iii) 1 is correct; 2 is wrong


iv) 1 is wrong; 2 is correct



Statement 1 is correct as most of the countries do international transaction is USD as it is easy to convert and countries have foreign reserve, also US being biggest country in terms of GDP, their currency is reliable and more powerful.


Statement 2 is incorrect as almost all the countries export and import certain goods and services. India export Mango and other fruits to other countries and buy oil from Iraq.


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