For Ecuador, an Advantage of Adopting the Dollar as Its

question 144

Multiple Choice

For Ecuador, an advantage of adopting the dollar as its official currency is that

• A) the Federal Reserve becomes Ecuador's lender of last resort.
• B) Ecuador escapes the likelihood of a speculative attack.
• C) Ecuador's government can capture revenue by issuing currency (called seigniorage).
• D) Eduador's monetary policy becomes independent from that of the Federal Reserve.

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Definitions:

Materials

refers to the raw items and components required in the production of goods, ranging from metals and plastics to textiles and electronics.

Assembly Department

A section in a manufacturing plant where parts are put together to create complete goods.

Weighted-Average Method

A cost flow assumption used in inventory valuation that averages out all costs of goods available for sale during the period.

Manufacturing Activity

A set of processes involved in transforming raw materials into finished products.