Which of the following does a nation sacrifice when dollarization takes place?
A)conducting its own monetary policy
B)acting as a lender of last resort
C)collecting seigniorage from independently issuing its own currency
D)all of the above

Question

Quizplus · Accepted Answer

Dollarization involves giving up a nation's ability to conduct its own monetary policy, act as a lender of last resort, and collect seigniorage from independently issuing its own currency. Therefore, all of the above options are correct.

Which of the Following Does a Nation Sacrifice When Dollarization