A Disadvantage of Dollarization Is That It

question 26

Multiple Choice

A disadvantage of dollarization is that it

• A) prevents a central bank from creating inflation.
• B) avoids the possibility of a speculative attack on the domestic currency.
• C) does not allow a country to pursue its own independent monetary policy.
• D) is a strong commitment to exchange rate stability.

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Definitions:

Universal Grammar

A theory in linguistics postulating that the ability to acquire language is innate to humans and that all human languages share a common underlying structure.

Learning Theory Approach

The theory that language acquisition follows the basic laws of reinforcement and conditioning.

Motherese

The simplified and exaggerated speech style used by adults when talking to babies and young children, also known as child-directed speech.

Gender-Assuming Term

Language or terms that imply or assign a gender to a person or a group, sometimes leading to stereotypes or biases.