A system where a foreign government uses the U.S.dollar as its currency is called:

Question

Quizplus · Accepted Answer

Dollarization occurs when a foreign country adopts the US dollar as its official currency, giving up its own currency. This means that the foreign country does not have control over its monetary policy and must rely on the US Federal Reserve for any changes in interest rates or money supply. This is different from a floating or fixed exchange rate system where a country still maintains its own currency but allows it to fluctuate in value relative to other currencies.

A System Where a Foreign Government Uses the U