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# 205.8 Lesson - globalReserve
**Screen:** globalReserve
**Headline:** The Global Reserve Currency
**Reward:** 5
**Text:** A global reserve currency is a type of money that is widely used in international trade and financial transactions. It is the preferred or most in-demand currency for settling transactions, as it is generally stable and widely accepted.
Changes to the global reserve currency can have significant geopolitical implications, as it can affect the balance of power between countries.
The dominant global reserve currency has typically had a lifespan of several decades, with the US dollar serving as the dominant global reserve currency for much of the 20th century.
\=================================================================
## QUIZ
**Question:** What is a global reserve currency?
**Answer:** A type of money that is widely used in international trade and financial transactions
**Feedback:** Correct! A global reserve currency is a type of money that is widely used in international trade and financial transactions. It is the preferred or most in-demand currency for settling transactions, as it is generally stable and widely accepted
**Correct:** true
**Answer:** A currency made out of rainbow-colored paper and glitter
**Feedback:** While most banknotes are made of colorful pieces of paper with strings of glitter as security features in them, this is not what defines a global reserve currency. Try again
**Correct:** false
**Answer:** The currency of the nation that pays the biggest share of the World Trade Organization's budget
**Feedback:** Surely this would benefit the WTO's funding immensely, but this is not how the global reserve currency is defined or chosen. Try again!
**Correct:** false
---
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