Which of the Following Is NOT an Argument Against Dollarization

question 8

Multiple Choice

Which of the following is NOT an argument against dollarization?

• A) The dollarized country's central bank can no longer act as a lender of last resort.
• B) The dollarized country can no longer profit from seignorage (the ability to profit from the creation of money within its economy).
• C) The dollarized country losses sovereignty over its own monetary policy.
• D) All of the above are arguments against dollarization from the viewpoint of the affected country.

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Definitions:

Fixed Allowance

A predetermined amount of money provided regularly, often for specific purposes like travel expenses, without the need to account for actual expenses.

Uniform Delivered Pricing

A pricing strategy where a seller charges the same price to all customers, including the cost of delivery, irrespective of the buyer's location.

Transportation Costs

Expenses involved in moving goods from one location to another, including freight, handling, and packaging costs.

Basing-Point Pricing

A pricing system where the delivered price of goods is determined from a specific geographic location or "base point".