A small country might want to use the money of a large country rather than print its own money if the small country:
A) is likely to be unstable, whereas the large country is likely to be stable.
B) is likely to be stable, whereas the large country is likely to be unstable.
C) needs the revenue for seigniorage.
D) wants to control its own inflation rate.

Question

Quizplus · Accepted Answer

A small and unstable country may not have the resources or stability to manage its own currency. By using the money of a large and stable country, they can benefit from the stability and credibility of that currency. Additionally, it can make it easier for international trade and investment.

A Small Country Might Want to Use the Money of a Large