Which of the following is NOT an argument against dollarization?
A) Dollarization causes a loss of sovereignty over domestic monetary policy.
B) Dollarization removes currency volatility against the dollar.
C) Dollarization causes the country to lose the power of seigniorage.
D) The central bank of the dollarized country loses the role of lender of last resort.

Question

Quizplus · Accepted Answer

This statement is actually an argument in favor of dollarization as it removes currency volatility against the dollar. The other statements are arguments against dollarization.

Which of the Following Is NOT an Argument Against Dollarization