Which of the Following Statements About Dollarization Is Accurate

Multiple Choice

Which of the following statements about dollarization is accurate?

A) A country that chooses to dollarize will enhance its control over its monetary policy.
B) Dollarization decreases exchange-rate risks by removing the risks of speculative attacks on its currency.
C) A country that dollarizes gains interest income on what had been the country's holdings of international reserve assets.
D) Dollarization enables a country to adopt a measure countering adverse foreign shocks without disrupting the country's economy.