_______________ is when a country abandons its own currency to adopt another country's currency as its official currency.
A)Seigniorage
B)Appreciation
C)Sterilization
D)Dollarization

Question

Quizplus · Accepted Answer

Dollarization is a process of replacing a country's currency with the U.S. dollar as its official currency. This is seen as a way to stabilize a country's economy, reduce inflation, and increase foreign investment. Seigniorage refers to the profits made by a government from issuing currency, appreciation refers to an increase in the value of a country's currency relative to others, and sterilization refers to the actions taken by a central bank to neutralize the effects of its foreign exchange interventions on the domestic money supply.

_______________ Is When a Country Abandons Its Own Currency to Adopt