Dollarization Is a Policy Action That

Multiple Choice

Dollarization is a policy action that

A) tries to stabilize the value of the local currency vs. the U.S. dollar.
B) adopts the currency of another country as the national medium of exchange.
C) mimics policy actions taken by the Bank of Canada.
D) outlaws the holding of foreign currencies other than the U.S. dollar.
E) buys and sells foreign exchange reserves in the foreign exchange market.