Final answer:
The correct answer is option b. U.S. dollar, which dominates the foreign exchange market and is the main currency used in international finance.
Step-by-step explanation:
The correct answer is option b. U.S. dollar. The reference material clearly indicates that the U.S. dollar is currently the primary reserve currency and dominates the foreign exchange market. This dominance is affirmed by its presence in 88.3% of all foreign exchange transactions, as stated in the provided tables. Furthermore, the U.S. dollar's importance is underlined by its role in international finance, consistently being used as the main currency for transactions, although other currencies like the euro, the British pound, the Chinese yuan, and the Japanese yen also play significant roles in the global market.
According to the information provided, Table 29.1 and Table 16.1 show that the most commonly traded currency on foreign exchange markets is the U.S. dollar. It dominates the foreign exchange market, being on one side of 88.3% of all foreign exchange transactions. The U.S. dollar is followed by the euro, the British pound, the Australian dollar, and the Japanese yen. Therefore, the U.S. dollar is currently the primary reserve currency.