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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 am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
describe exchange rate regimes and explain the effects of exchange rates on countries' international trade and capital flows
CFA® 2024 Level I Curriculum, Volume 1, Module 7.