An objective of the dollarization of the Mexican economy would be to:
A) Shield its economy from hyperinflation,currency depreciation,and capital flight
B) Allow the Federal Reserve to be its lender of last resort
C) Ensure that its monetary policy is independent of the Federal Reserve
D) Permit it to benefit from tariffs and subsidies imposed by the U.S.government

Question

Quizplus · Accepted Answer

The objective of dollarization is to shield the economy from hyperinflation, currency depreciation, and capital flight by using a stable currency like the US dollar. This move helps to stabilize the economy, restore confidence in the financial sector and attract foreign investment. The other options - B, C, and D - are not objectives of dollarization.

An Objective of the Dollarization of the Mexican Economy Would