Which of the following statements is TRUE about a vehicle ...

[mia]

Which of the following statements is TRUE about a vehicle currency?
 
  A) It is widely used to denominate contracts made by parties who reside in the country that issues the vehicle currency.
  B) The dollar is sometimes called a vehicle currency because of its pivotal role in many foreign exchange deals.
  C) There is much skepticism that the euro will ever evolve into a vehicle currency on par with the dollar.
  D) The pound sterling, once second only to the dollar as a key international currency, is beginning to rise in importance.
  E) Vehicle currencies include nondeliverable currencies like the renminbi.

Question 2

Intraindustry trade is characterized by what two features?
 
  What will be an ideal response?

[kjo;oj]

Answer to Question 1

B

Answer to Question 2

Economies of scale and differentiated products