Question

why is a system of currency exchange necessary for international trade?
most goods bought on the international market must be bought and paid for using united states dollars only
those buying goods on the world market only accept payment in gold and silver
there must be a way to pay for goods purchased from countries with different types of currencies
nearly all world currencies are worthless on the world market

Explanation:

To determine the correct answer, we analyze each option:

• Option 1: International trade doesn't require payment only in US dollars. Many currencies are used, so this is incorrect.
• Option 2: Modern international trade doesn't rely on gold/silver payment; most use currency, so this is wrong.
• Option 3: Different countries have different currencies. For trade between them, a system to convert currencies (exchange) is needed to pay for goods, which matches the purpose of currency exchange.
• Option 4: World currencies have value in the global market (used for trade, reserves, etc.), so this is false.

Answer:

C. There must be a way to pay for goods purchased from countries with different types of currencies