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Macroeconomics

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Common Vehicle Currencies

MACRO-34FT$B

A "vehicle" currency is one that is used to facilitate trade between two other currencies for which a well-functioning market does not exist. For example, a trader wishing to exchange Thai baht for Swedish krona would first need to exchange baht for a vehicle currency and then exchange that currency for krona.

Which of the following are commonly traded vehicle currencies (defined as account for at least 5% of all international currency volume of trade)? Select ALL correct responses.

A

Chinese Renminbi (or Yuan)

B

Indian Rupee

C

The Euro

D

US Dollar

E

Russian Ruble

F

British Pound

G

Swiss Franc

H

Hong Kong Dollar