A Country That Dollarizes

question 95

Multiple Choice

A country that dollarizes

• A)maximizes its seignorage.
• B)earns the same amount of seignorage as it would with a currency board.
• C)earns the same amount of seignorage as it would with exchange-rate targeting.
• D)eliminates its seignorage.
• E)must pay seignorage to other governments to use their currency.

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Definitions:

UN Commission on International Trade Law

A legal body established by the United Nations to promote the harmonization and unification of international trade law.

CISG

The United Nations Convention on Contracts for the International Sale of Goods, which governs international purchase and sale agreements.

UNCITRAL Model Law on Electronic Signatures

An international framework designed to facilitate the use of electronic signatures and ensure their legal recognition and equivalence to traditional handwritten signatures.

Judicial Branch

The branch of government responsible for interpreting the laws, adjudicating legal disputes, and administering justice.