When a Country Abandons Its National Currency and Adopts the Currency

question 121

Multiple Choice

When a country abandons its national currency and adopts the currency of the United States, this is known as:

• A) a floating exchange rate system.
• B) dollarization.
• C) a speculative attack on the United States.
• D) a currency board.

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Definitions:

Automated Equipment

Equipment that operates with minimal human intervention, using technology to perform tasks that would otherwise require manual effort.

Attractive Investment

An investment that is appealing due to its potential for favorable returns or its alignment with investment criteria.

Simple Rate

A basic method for calculating interest or return, often expressed as a percentage over a period of time.

Cash Operating

Cash operating activities involve the cash inflows and outflows directly related to the core business operations, such as revenue from sales and payments to suppliers.