reserve currency

Meanings

• noun

  A currency that a country or organization holds in large quantities as a monetary reserve to maintain financial stability and to conduct international trade.

  - "The US dollar is the world's primary reserve currency."
  - "Central banks around the world hold vast reserves of the euro and the US dollar."

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Variants

List of all variants of reserve currency that leads to same result
currencies , currency , fractional currencies , fractional currency , hard currency

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Etymology

origin and the way in which meanings have changed throughout history.

The term 'reserve currency' emerged in the early 20th century as countries began to hold large foreign exchange reserves to maintain financial stability and to conduct international trade.

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Trivia

Any details, considerations, events or pieces of information regarding the word

1. The US dollar has been the world's primary reserve currency since the end of World War II.

2. The euro has emerged as a major reserve currency in recent years, challenging the US dollar's dominance.

3. China has been accumulating large reserves of foreign currency, primarily in the form of US dollars, for several decades.

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Related Concepts

informations on related concepts or terms closely associated with the word. Discuss semantic fields or domains that the word belongs to

1. Monetary policy: Monetary policy is the use of interest rates, open market operations, and other tools by a central bank to influence the supply of money and credit in an economy and thus control inflation and interest rates.

2. Foreign exchange: Foreign exchange is the process of converting one currency into another currency for international trade and investments.

3. Central bank: A central bank is an independent financial institution that manages a country's monetary policy and issues and regulates the supply of its currency.

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Culture

Any cultural, historical, or symbolic significance of the word. Explore how the word has been used in literature, art, music, or other forms of expression.

The reserve currency holds significant cultural and historical importance as it is often used as a symbol of economic power and stability.

How to Memorize "reserve currency"

1. mnemonics
   

   - Remember that a reserve currency is a country's monetary 'reserve' or 'backup' currency.

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