For developing countries, currency boards and dollarization are intended to
A) convince speculators that the exchange rate is unchangeable.
B) promote confidence in the soundness of the nation's money supply.
C) arrest any tendencies in an economy toward inflation.
D) All of these are correct.

Question

Quizplus · Accepted Answer

Currency boards and dollarization are intended to achieve all three objectives listed in the answer choices: convincing speculators that the exchange rate is unchangeable, promoting confidence in the soundness of the nation's money supply, and arresting any tendencies in an economy toward inflation.

For Developing Countries, Currency Boards and Dollarization Are Intended to