Dollarization Is a Policy Action That

question 53

Multiple Choice

Dollarization is a policy action that

• A)mimics policy actions taken by the Bank of Canada.
• B)outlaws the holding of foreign currencies other than the U.S. dollar.
• C)tries to stabilize the value of the local currency vs. the U.S. dollar.
• D)adopts the currency of another country as the national medium of exchange.
• E)buys and sells foreign exchange reserves in the foreign exchange market.

---

Definitions:

Collective

Pertaining to or shared by two or more individuals or entities, often emphasizing group actions and outcomes over individual ones.

Intermediaries

Third parties who facilitate negotiation, communication, or transactions between two entities without having a direct interest in the outcome.

Cross-Cultural Negotiations

Negotiation processes that take place between parties from different cultural backgrounds, requiring awareness of cultural norms and values.

Micro Context

Refers to the immediate, small-scale environment or situation in which interactions or processes occur, often affecting outcomes.