In January 2000 Ecuador officially replaced its national currency, the Ecuadorian sucre, with the U.S. dollar. This practice is known as:
A)bi-currencyism.
B)sucrerization.
C)a Yankee bailout.
D)dollarization.

Question

Quizplus · Accepted Answer

The practice of officially replacing a national currency with the use of the U.S. dollar is known as dollarization. This is the case with Ecuador, which switched to using the U.S. dollar as its official currency in January 2000. Choices A and B are not correct terms for this practice, and choice C is not a recognized term for this economic policy.

In January 2000 Ecuador Officially Replaced Its National Currency, the Ecuadorian