The world's most important reserve currency is the

A) American dollar.
B) British pound.
C) German mark.
D) Japanese yen.
E) Swiss franc.

The American dollar is the most widely used currency for international transactions and is also the primary reserve currency held by central banks around the world. It is used to price commodities such as oil, gold, and other important goods. The dollar's dominance in the global financial system is driven by various factors, including the size and stability of the US economy, the strength of the US military, and the depth and liquidity of US financial markets.