The idea of dollarization is:
A) the use of domestic currency in a variable proportion with neighboring countries' currency.
B) the use of the U.S. dollar for paying the native country's debt.
C) a nation's use of a foreign currency over which it has no policy control.
D) the use of domestic currency in countries in Europe that are not part of the European Union.

Question

Quizplus · Accepted Answer

Dollarization refers to the adoption of a foreign currency (usually the U.S. dollar) as the official currency of a country. In this case, the country would not have any policy control over the currency, as it is not its own domestic currency.

The Idea of Dollarization Is