When a Country Abandons Its National Currency and Adopts the Currency

question 121

Multiple Choice

When a country abandons its national currency and adopts the currency of the United States, this is known as:

• A) a floating exchange rate system.
• B) dollarization.
• C) a speculative attack on the United States.
• D) a currency board.

---

Definitions:

Legacy Factor

The influence of historical achievements or status on present circumstances, often affecting an entity's reputation, opportunities, or resources.

Affirmative Action

A policy that gives preference to women or minority group members if equally qualified people are available for a position, thus compensating for past discrimination.

Professionalization

Takes place when members of an occupation insist that people earn certain credentials to enter the occupation. Professionalization ensures standards and keeps professional earnings high.

Credentials

Documents or qualifications proving a person's background, status, or abilities.