Monetary Union, in Comparison to Dollarization, Means That

question 92

Multiple Choice

Monetary union, in comparison to dollarization, means that:

• A) countries forgo revenues from seignorage.
• B) countries share in monetary policy decisions.
• C) the central bank no longer has the ability to be the lender of last resort.
• D) all of the answers given are correct.

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Definitions:

Spillover Benefit

An advantage that results from an activity or product but benefits those who are not directly involved in its production or consumption.

Pollution Abatement

The reduction or elimination of pollution to protect the environment, typically involving strategies and technologies to control emissions and contaminants.

Diminishing Returns

A principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other variables remain constant.

Marginal Benefit

The additional satisfaction or utility derived by consuming or producing one more unit of a good or service.