If a Country Applies Dollarization to Its Currency,it Has Adopted

question 237

Multiple Choice

If a country applies dollarization to its currency,it has adopted a:

• A) floating exchange rate.
• B) fixed exchange rate with another currency.
• C) managed float of its currency.
• D) dirty float of its currency.

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Definitions:

Higher-Income Families

Refers to households that have an income level significantly above the median or average income for their area or country.

Local Governments

Governmental authorities that operate at a level below the state or national, managing local affairs such as city, town, or village administration.

Tax Revenue

The earnings collected by governments as a result of taxation.

State Governments

The administrative bodies governing individual states within a federal system, responsible for local laws and policies.