For Developing Countries, Currency Boards and Dollarization Are Intended to

question 135

Multiple Choice

For developing countries, currency boards and dollarization are intended to

• A) convince speculators that the exchange rate is unchangeable.
• B) promote confidence in the soundness of the nation's money supply.
• C) arrest any tendencies in an economy toward inflation.
• D) All of these are correct.

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Definitions:

Commitment

The state or quality of being dedicated to a cause, activity, or relationship, often demonstrated through perseverance and loyalty.

Costs

Expenses or expenditures required for something; can refer to financial, emotional, or other forms of costs.

Rewards

Benefits, incentives, or compensations received as a result of one's actions or behaviors.

Labeling Theory

The view that reactions of, and characterizations by, others are an essential element in deviance.