In the Trade Relationship with China, Why Is the US

Multiple Choice

In the trade relationship with China, why is the US dollar in more demand than the Chinese yuan?

A) More people demand the yuan domestically in China, so it is not used for imports and exports.
B) The dollar is the common transaction currency between the two countries.
C) The yuan is pegged to the US dollar.
D) Formal institutions and regulations demand the trade be conducted in the dollar.