Recently the term "Reserve Currency" was in the news, which of the following is the most appropriate explanation of the term?
1
Any currency that is widely used for transactions at national level only and is commonly held as reserves by central banks
2
Any currency that is widely used in cross-border transactions and is commonly held as reserves by central banks
3
Any currency that is widely used for transactions at national level only and is commonly held as reserves by commercial banks
4
Any currency that is widely used as a store so that it can only be used at the time of the National Crisis.