A Country That Dollarizes

question 95

Multiple Choice

A country that dollarizes

• A)maximizes its seignorage.
• B)earns the same amount of seignorage as it would with a currency board.
• C)earns the same amount of seignorage as it would with exchange-rate targeting.
• D)eliminates its seignorage.
• E)must pay seignorage to other governments to use their currency.

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Definitions:

Research Methods

The strategies, techniques, and procedures used in the investigation of phenomena, acquisition of new knowledge, or correction and integration of previous knowledge.

Experimental

Pertaining to or based on a methodical plan or procedure to establish cause and effect by testing hypotheses and controlling variables.

Correlational

Pertaining to a statistical relationship between two or more variables, indicating how one may predict the other without implying causation.

Overt Behavior

Actions or responses that are observable and measurable by others, as opposed to thoughts or feelings which are internal and subjective.