Why Would a Country Use Another Country's Currency Instead of Its

question 60

Multiple Choice

Why would a country use another country's currency instead of its own?

• A)This is the first step when a larger country takes over a smaller country.
• B)Smaller countries want to reduce the instability of their own currencies.
• C)The International Monetary Fund (IMF)forces smaller countries to adopt the U.S.dollar when they have serious currency crises.
• D)Larger countries force smaller countries to adopt their currencies in order to facilitate trade.
• E)Larger countries want to reduce the possibility of a global currency crisis.

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