Question

The United States trades goods internationally with Israel. The United States uses the US dollar as currency, whereas, Israel uses the Israeli new shekel.
What must happen for trade to successfully occur between the United States and Israel?

A
All tariffs and quotas must be eliminated.
B
A system for exchanging currency between nations is required.
C
The two countries must trade the same amount of goods to keep international trade balanced.
D
The United States must agree not to trade with Saudi Arabia since they do not trade with Israel.

Answer 1

B
A system for exchanging currency between nations is required.