If policymakers of a non-European nation adopt the euro as their sole legal tender, this is called ________________.

Question

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The process of a non-European nation adopting the euro as its sole legal tender is called dollarization. This term is used because the U.S. dollar was the first currency to be adopted in this way, meaning that other nations began to use it as their only currency. However, the term now applies to any situation where a nation adopts a foreign currency as its sole legal tender.

If Policymakers of a Non-European Nation Adopt the Euro as Their