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When the Nation of Varnia Faced Rampant Economic Inflation, It

Question 28

Multiple Choice

When the nation of Varnia faced rampant economic inflation, it became evident that the inflation would reduce Varnia's domestic currency's buying power. As a result, the Varnian government decided to officially use the currency of Rhotabha as legal tender for conducting transactions. In this scenario, the Varnian government's action of abandoning its own domestic currency and using Rhotabha's currency instead is called _____.


A) dollarization
B) equitization
C) amortization
D) delinquency

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