Which of the Following Statements About Dollarization Is Accurate

question 45

Multiple Choice

Which of the following statements about dollarization is accurate?

• A)A country that chooses to dollarize will enhance its control over its monetary policy.
• B)Dollarization decreases exchange-rate risks by removing the risks of speculative attacks on its currency.
• C)A country that dollarizes gains interest income on what had been the country's holdings of international reserve assets.
• D)Dollarization enables a country to adopt a measure countering adverse foreign shocks without disrupting the country's economy.

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Definitions:

Elastic

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Rent Controls

Government-imposed limits on the rent that landlords can charge tenants, intended to keep housing affordable.