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Basic Question 2 of 15
By adopting another country's currency as legal tender, a dollarized country inherits that country's ______.
B. domestic monetary policy
C. credit-worthiness
A. currency credibility
B. domestic monetary policy
C. credit-worthiness
User Contributed Comments 5
| User | Comment |
|---|---|
| SalimBouch | why not B also? |
| merc5559 | same question ^ |
| michaeloa3 | I think the country will adopt another country's international monetary policy, not domestic one. |
| CJHughes | They are inheriting the effects of the other countries monetary policy, not the actual policy |
| MathLoser | A dollarized country cannot have its own monetary policy. |
I used your notes and passed ... highly recommended!
Lauren
Learning Outcome Statements
describe exchange rate regimes and explain the effects of exchange rates on countries' international trade and capital flows
CFA® 2025 Level I Curriculum, Volume 1, Module 7.