Question

Which currency is used for internal trade?
A) International currency
B) National currency
C) World Bank currency
D) Euro currency

Answer 1

Hint: Currency is a form of payment for goods and services. In a nutshell, it is money in the form of paper or coins that is usually issued by the government and is generally accepted as a form of payment at face value.

Complete answer:
In the twenty-first century, a new type of currency, virtual currency, has entered the lexicon. Bitcoins, for example, have no physical existence or government backing and are only traded and stored electronically.

One distinguishing feature of modern money is that it is uniformly worthless in and of itself. That is, bills are made of paper rather than gold, silver, or bronze coins. Although the concept of using paper as a currency was developed in China as early as 1000 BC, accepting a piece of paper in exchange for something of real value took a long time to catch on. Modern money is printed on paper in various denominations, with fractional issues in the form of coins.

Now let us look into the given options:
Option A: International currency:A global currency is one that is accepted for international trade all over the world. Most international transactions accept some of the world's currencies. The most widely used currencies are the US dollar, the euro, and the Japanese yen. The reserve currency is another term for a global currency.

Option B: National currency: A national currency is one that is issued by the central bank or monetary authority of a government. It is generally accepted as the dominant currency for exchange within that country. Latin American countries that use another country's currency include Ecuador and El Salvador, which recognize and accept the US dollar for the exchange of goods and services.

Option C: World Bank currency:According to the International Monetary Fund, the most widely used currency is the US dollar. It accounted for more than 60% of all known central bank foreign exchange reserves as of the fourth quarter of 2019. Even though it lacks an official title, this makes it the de facto global currency.

Option D: Euro currency:The euro is the official currency of 19 of the European Union's 27 member states. As of 2019, this group of states is known as the eurozone or euro area, and it is home to approximately 343 million people.

The majority of countries have their currencies. Switzerland's official currency, for example, is the Swiss franc, while Japan's is the yen. The euro, which has been adopted by the majority of European Union members, is an exception.

A national currency is issued by the central bank or monetary authority of a government. It is generally accepted as the dominant currency for exchange within that country. Currency examples include US dollars (US$), euros (€), Indian rupees (₹), Japanese yen (¥), and pounds sterling (£).

Thus, the answer is option B i.e, National currency.

Note: The United States Internal Revenue Service (IRS) stated in 2014 explaining that virtual currency is treated as property for Federal income tax purposes and providing examples of how long-standing tax principles applicable to property transactions apply to virtual currency.