In the Early 2000s, Ecuador Replaced Its Currency, the Sucre

question 134

Multiple Choice

In the early 2000s, Ecuador replaced its currency, the sucre, with the U.S. dollar as its official currency. What would prompt a country to abandon its own currency and adopt the currency of the United States?

• A)With dollars, monetary policy will be better able to offset shock to the economy.
• B)Adopting the dollar will bring inflation under control, which will aid economic growth.
• C)In making the transition to dollars, corrupt government officials are able to amass tremendous fortunes.
• D)Adopting the dollar will result in the elimination of U.S. tariffs on exports from Ecuador to the United States.

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Definitions:

Consideration

Something of value promised to another when making a contract.

Edmonton

The capital city of Alberta, Canada, known for its cultural, governmental, and educational institutions.

Calgary

A city in the Canadian province of Alberta, known for its high quality of life and as a center for Canada's oil industry.

Invitation to Treat

An indication by a person that they are prepared to negotiate the terms of an offer, but it is not in itself an offer that can be accepted to form a contract.