Which of the Following Best Defines Dollarization

question 99

Multiple Choice

Which of the following best defines dollarization?

• A) A country uses the U.S. dollar as well as its currency for all transactions.
• B) A country adopts a foreign currency for all transactions basically eliminating its own monetary policy.
• C) A country eliminates its own currency for international transactions and requires that all international transactions be conducted in U.S. dollars.
• D) The central bank of a country agrees to exchange its own currency for U.S. dollars at a fixed exchange rate.

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Definitions:

Individualism

A social theory favoring freedom of action for individuals over collective or state control.

Marriage Partner

An individual's spouse or significant other with whom they are united in marriage or a marriage-like relationship.

Socialization Patterns

The processes through which individuals learn and internalize the values, beliefs, and norms of their society, shaping their behaviors and identities.

Authority Relations

Refers to the dynamic and structure of power and control within organizations, societies, or any systematic interaction where decisions are made and followed.