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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. |
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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.