Watch Video & Answer the following questions.

1. Why is the dollar so powerful?
2. How much of the US dollar is circulating around the world? 2. US dollar is the de facto global currency. What does this mean? 3. Was the US dollar affected during the pandemic? 4. Why is the dollar so powerful according to the former U.S. Treasury Secretary Steven

Mnuchin? 5. Why does the dollar serve as a safe haven during the crisis? What happens to the demand

for the US dollar during the times of crisis? 6. Which government agency is responsible for issuing the US dollar? 7. What is the currency swap line and what purposes does it serve? 8. By 1947, the U.S. accumulated how much percent of the entire gold reserves? 9. 44 allied countries met in which town in New Hampshire? 10. What did these countries decide to do about the dollar? 11. In what year did President Nixon delink the dollar from the gold? 12. What does the free floating exchange rate mean? 13. When an Indian merchant and a Canadian business meet, which currency would they

likely to conduct their transactions with? 14. Do you think other currencies, including bitcoins have any chance of overtaking the US

dollar as the global currency?

Sample Solution